ENTREPRENEURSHI

PDEVELOPMENT (
MODULE-
II
)
Edi
tedby
:MANAVSIR
(
Facul
ty:
PMEC&ResearchSchol
ar:
Ber
hampurUni
ver
sit
y)

ModuleI I
:Setti
ngupofasmal lBusinessEnt erprise.
I
dentif
ying the Business oppor t
unity -Busi ness oppor t
uni
ti
es inv ar
ious sectors,
for
maliti
esforset t
ingupsmal lenterpr
isesinmanuf acturi
ngandser v
ices,Envi
ronment al
pol
luti
onandal l
iedregulat
oryandnon- regulatoryclearancesfornew venturepromotion
i
nSMEsect or.
Writ
ingaBusi nessplan,component sofaB- Plan,determiningBankabi
li
tyoftheproject.

DefinitionsofMi cr o, Smal l&Medi um Ent erprisesI naccor dancewi tht hepr ovisionof
Micro, Smal l&Medi um Ent er prisesDev elopment( MSMED)Act , 2006t heMi cro,Smal l
andMedi um Ent erpr ises( MSME)ar ecl assi f
iedi nt woCl asses:
1.Manuf acturingEnt er pr i
ses- heent erprisesengagedi nt hemanuf act ureor
product ionofgoodsper tainingt oanyi ndust r
yspeci fiedi nt hef irstschedul et ot he
indust ries( Dev elopmentandr egul ation)Act ,1951)orempl oy ingpl antand
machi ner yint hepr ocessofv alueaddi ti
ont ot hef i
nal producthav ingadi st i
nct
nameorchar act eroruse.TheManuf act uringEnt erpr i
sear edef inedi nt ermsof
invest menti nPl ant&Machi ner y.
2.Ser viceEnt er prises: -Theent erpr i
sesengagedi npr ov idingorr ender i
ngofser vices
andar edef inedi nt ermsofi nv est menti nequi pment .
.
Enterpr i
seshav ebeencl assi fiedundert heMi cro, Smal l andMedi um    
 Enterprises
Devel opmentAct ,2006br oadl yi nto
(i
)Ent erpr i
sesengagedi nt hemanuf act ur epr oduct i
on  of  
goods  per tainingt o
any  
indust ry&
(i
i)Ent erprisesengagedi npr ov iding/ render i
ngofser v ices.
Themanuf act uri
ngandser viceent er priseshav ebeenf urthercl assi fi
edi ntomi cro, smal l
andmedi um basedoni nv est menti npl antandmachi ner yandi nequi pment srespect i
v ely
.
Detailsar easunder :
Class/ Cat egor y Manuf act ur i
ng Ser vice  
MicroEnt er prisesI nv est ment  upto Rs. 25  lakhI nvest ment  
upt o  Rs. 10 lakhs  
s  
Smal l Enterpr isesI nv est mentabov e Invest mentabov e
Rs. 25  l
akhand  upt o Rs. 5 croRs. 10 lakhand  upt o  Rs.2 crore
re
Medi um Inv est mentabov e Invest mentabov e
Enterpr i
ses Rs. 5  cror eand  upt o Rs. 10 crRs. 2 cror eand  upt o Rs.5  crore
or e
CHARACTERI STI CSOFMSMEs
Thei mpor tantchar act er isticsofMSMEsar esummar izedasf ollows:
Theyar egener allyor gani zedandr unbyi ndi vidual ent r
epr eneur s.
Theyr equi relesscapi t
al .
Theyar ef undament al l
yl abour -i
nt ensi veuni tsf aci l
itat i
nggr eat erut il
izationofman
power .
Theyi nv olvet heuseofsi mpl etechnol ogy ,i
nt ensi veut ilizat i
onofi ndi vi
dual skill
l
eadi ngt opr ofessional speci al i
zat i
on.
Theycat ert heindi vidual tast esandf ashi onsandr enderper sonal izedser vi
cet o
consumer s.
Theyar ehi ghlyl ocal izedi ndust ries.Usi ngl ocal r
esour cesMSMEsar edecent ralized
anddi sper sedt or ur al ar eas.
 Theyar eel i
gi bleforgov t.assi stanceandpat ronageandf orconcessi onalfinanceby
banks,financi al instituti
onset c.
Theyar eflexi bletoal argeext ent.Theyar emor esuscept ibletochangeandhi ghly
react
iveandr ecept ivet osoci o- economi ccondi ti
ons.
Theyar efreef rom r ed-tapism andbur eaucr ati
chandi caps.
Compar edt ol argeuni ts,aMSMEhasal essergest ationper iod.ie,t
heperiodaf t
er
whichtheoni nv est mentst arts.
OBJECTI VESOFMSMEs
Theprimar yobj ectivesofMSMEar et oplayacompl ement ar
yr oleinthesocio-economic
set
upofacount ry .Theot herobj ectivesar easf oll
ows:
1)Topr ov idei ncr easedempl oy mentoppor tuniti
es.
2)Topr ov idepr oduct ionofl ar gev arietyofgoodsespeci all
yconsumergoodst hrough
l
abourint ensi vemet hods.
3)Tobr ingbackwar dar east ooi nt hemai nst ream ofnat ional development .
4)Toimpr ov et hel ev eloflivingofpeopl eint hecount ry.
5)Tocr eat eacl imat ef orthedev elopmentofsel f-
empl oy edexper ts,pr
ofessionalsand
smallent repreneur s.
6)Toensur emor eequi tabledi stributionofnat i
onal i
ncome.
7)Toensur ebal ancedr egional dev elopmentasr egardsi ndust r
ies.
8)Toencour aget headopt ionofmoder nt echniquesi nt heun- organizedtradi
tionalsect
or
orthe
i
ndustry.

ADVANTAGEOFMSMEs
1)Theyar erelati
velymor eenvi
ronment alfr
iendly.
2)Theyar egener all
ybasedonl ocalresources.
3)Theypr ovideampl eopportunit
iesforcreativi
tyandexper imentati
on.
4)Theyf aci
lit
ateequi t
abledist
ri
but i
onofincomeandweal th.
5)MSMEenj oy sthegov er
nmentsuppor tandpat r
onage.
6)Thesehel psint hebalancedregionaldevelopment .
7)Itispossibletomakenecessar ychangesasandwhenr equir
ed.
8)Thesehel pinreducingpr i
ces.
9)Therei sacloseanddi r
ectpersonalcontactwi t
hthecust omerandempl oyees.
10)Theycr eatemor eempl oymentoppor tunit
ies.Theyarel abourint
ensi
v e.Theyoffer
ampl escopef orselfemployment .
11)Theyr equireonlylesscapit
al.Iti
saboont oacount rylikeIndiawher
ecapi tali
s
defi
cient.
12)MSMEal onecansat isfyi
ndivi
dual t
astesandof ferpersonalizedser
vicet othe
customer s.

DI
SADVANTAGESOFMSMEs
MSMEssuf f
erfr
om lackoffunds.Theyar efinanci
all
yweak.
Theysufferfr
om lackofmanagerialandot herskil
l
s.Theycannotempl oyhi
ghl
ypaid
of
fi
cial
s.
MSMEsal waysf
acet oughcompet i
ti
onf r
om l ar
gebusinesses.
Theyarenotwellequippedtomakeadv antageoft hel
atesttechnol
ogyandmodern
methods.
Thereisonlyali
tt
lescopefordivi
sionoflabourandspeci ali
zati
on.
MSMEscannotaf f or
dtospendlargesumsofmoneyonr esearchandexper
iment
s
Theycannotsurvi
v einti
mesofadv ersi
ty.
Theycannotsecurecheapcredit
.

ROLE/IMPORTANCEOFMSMEsI NDEVELOPI
NGCOUNTRI ES
1)Lar
geEmploymentOppor
tuni
ti
es:
MSMEsar egener
all
ylabour
-i
ntensi
ve.Forev
ery
Rs.1l akhoff ixedi nv est ment ,MSMEsect orpr ov i
desempl oy mentf or26per sonsas
agai nst4
per sonsi nt hel argescal esect or.Thusi nacount ryli
keI ndiawher ecapi talisscar ceand
l
abouri s
abundant , MSMEsar eespeci allyimpor tant .
2)Economi calUseofCapi tal:MSMEsneedr el
at i
velysmal lamountofcapi tal .Hencei tis
suitabl et oacount ryl ikeI ndi awher ecapi talisdef i
cient .
3)Bal ancedRegi onalDev elopment :Gener al
lysmal lent er prisesar el ocat edi nv il
l
ageand
smal ltowns.Ther ef or ei tispossi blet ohav eabal ancedr egional gr owt hofi ndust r i
es.
Indiai sa
l
andofv i
ll
ages.
4)Equi t ableDi stribut ionofI ncomeAndWeal th:Itremov est hedr awbacksof
capi talism, abnor mal pr ofiteering, concent rati
onofweal thandeconomi cpoweri nthe
handsoff ew et c.
5)Hi gherSt andar dofLi ving: MSMEsbr inghi ghernat i
onal income, higherpur chasing
powerofpeopl einr ural andsemi -urbanar eas.
6)Mobi lizat i
onofLocal sResour ces: Thespr eadingofi ndust ri
esev eni nsmal lt
owns
and
vil
lageswoul dencour aget hehabi toft hr if
tandi nvest mentamongt hepeopl eofr ural
areas.
7)Si mpl eTechnol ogy :Newbutsi mpl et echni quesofpr oduct i
oncanbeadopt edmor e
easi l
ybyMSMEswi t
houtmuchi nv estment .
8)LessDependenceonFor eignCapi tal: MSMEsuser elativelylowpr opor ti
onofi mpor ted
equi pmentandmat er ials.Themachi ner yneededf ort hesei ndustr i
escanbe
manuf act uredwi thint hecount ry.
9)Pr omot i
onofSel fEmpl oy ment :MSMEsf osterindi vidual skillandi ni
tiati
v eand
promot esel f -
empl oy mentpar ti
cul arlyamongt heeducat edandpr of essional class.
10)Pr omot ionofExpor ts:Wi ththeest ablishmentofal ar genumberofmoder nMSMEs
i
nt heposti ndependenceper iod, thecont ri
but i
onoft hesmal lscal esect ori nt heexpor t
ear ningshasi ncreasedmuch.
11)Pr ot ect i
onofEnv ironment :MSMEshel ptopr otectt heenv i
ronmentbyr educingt he
probl em ofpol l
ution.
12)Shor t
erGest ationPer i
od: I
nt heseent er pri
sest het i
me- l
agbet weent heexecut i
onof
thei nv est mentpr ojectandt hest artoff lowofconsumabl egoodsi sr el
ativelyshor t
.
13)Faci li
tat eDev elopmentofLar geScal eEnt erprises: MSMEssuppor tt hedev elopment
ofl argeent er prisesbymeet ingt hei rrequi rement sofi nput sofr awmat erials,
i
nt ermedi at egoods, spar epar tset c.andbyut i
l
izingt hei rout putf orf urt
herpr oduction.

PROBLEMSOFMSMEs
Someoft hemor eimpor tantpr oblemsf acedbyMSMEsar easf oll
ows:
1)LACKOFMANAGERI NGEXPERI ENCE: Theymaynotbehav ingspeci ali
zedknowl edge
i
nt hedi f
ferentfiel
dsofmanagement .Att hetimeofi nit
iati
ngthepr oj ect,theyar enotina
posi t
iont oanticipatecor rectlytheirfinancialrequir
ement sandt hesi zeofmar ketfor
theirpr oducts.
2)I NADEQUATEFI NANCE: Gener al
lyMSMEsar enotinaposi t
iont oar rangef ullfi
nance
from t heirownsour ces.Theyobt ainf inancefrom unorganizedf i
nancesect orathigher
rateofi nterest.
3)LACKOFPROPERMACHI NARYANDEQUI PMENT:ManyMSMEsusei neffi
cientand
out datedmachi neryandequi pment .Thisaf f
ectsthequal i
tyofpr oduct i
on.
4)LACKOFTECHNI CALKNOW- HOW:Donothav etheknowl edgeaboutdi fferent
alternativetechnol ogiesandpr ocessesav ail
ableformanuf acturingthei rpr oductsto
i
mpr ov ethequal it
yofpr oduct sandr educecost s.
5)RUNONTRADI TIONALLI NES: Theyhav enoty etadoptedmoder nmet hodsand
techni quesofpr oduct ion.Theyhav enott akenadequat einter
esti nresear chand
dev elopment
effort
s.Hencet heycannotber unef fi
cient l
y.
6)IRREGULARSUPPLYOFRAW MATERI ALS: Themaj orit
yofMSMEsdependsonl ocal
sourcesfortheirrawmat eri
al requirement s.Smal lent r
epreneursar eforcedt opayhi gh
pri
cesf ormaterialsbecauset heypur chasemat erialsinsmal lquantity.
7)PROBLEM OFMARKETI NG: Thebr andnameoft hepr oductsofMSMEsi sacut eduet o
toughcompet it
ionf rom lar
gei ndustri
es.I tcannotaf fordtocost l
yadv erti
sementand
networkofdistributi
onsy stem.Ther ear edel aysi nthepay mentofbi ll
sbyl arge
purchasersresulti
ngi ni
nadequat ewor ki
ngcapi t
al.
8)PERSONNELPROBLEMS:I tisdiffi
cultf orthem t ogetqual if
iedper sonst or unt he
business.Theycannotpr ovidemucht r
aini ngfaci l
iti
est oempl oyees.
9)LACKOFCLEAR- CUTPOLI CYOFTHEGOVT: TheGov t.mayt akedeci si
onsr elatingto
MSMEsont hebasi sofpoliticalconsider ationr atherthanoneconomi cconsi der ation.
10)BOGUSUNI TS: Thegov er nmentshoul dl ooki ntothisaspectser iously,
br eakt he
strongholdofsuchv ested-i
nt erestedandpr omot eonl ygenuineent repreneur shipi nt he
country.
11)OTHERPROBLEMS:Li kei neffi
cientmanagement ,non-avail
abil
it
yofcheappower ,
burdenoflocalt axesetc.

I
dent
if
icat
ionofBusi
nessOppor
tuni
ty:

IdeaGener ationandOppor tuni ty!

Ingener al sense, t
het erm oppor tuni t
yimpl iesagoodchanceoraf avour abl esi tuat iont o
dosomet hi ngof fer edbyci rcumst ances.I nt hesamev ein, busi nessoppor tuni tymeansa
goodorf av our abl echangeav ailablet or unaspeci f
icbusi nessi nagi v enenv ironmentat
agi venpoi ntoft i
me.
Thet erm‘ oppor tunit y’alsocov er sapr oductorpr oject .Hence, thei dent ifi
cat i
onofan
oppor tunit yorapr oductorpr oj ecti sident ical and, ther efor e, alltheset hr eet ermsar e
usedassy nony ms.TheGov ernmentofI ndia’ s“ LookEastPol icy”t hroughNor thEasti san
exampl eof‘ oppor tuni ty’todobusi nessi ni temsl iket ea, handi craf ts, her bal s, turmer ic,
etc.
Oppor tuni tyi dent ifi
cat i
onandsel ect i
onar el ikecomerst onesofbusi nessent erprise.
Bettert hef ormer ,bet t
eri st hel atter.Inasense, ident i
f i
cat i
onandsel ect i
onofasui table
businessoppor tuni tyser vesast het r
itesay ing‘ wel l beguni shal fdone. ’ But ,iti slike
bettersai dt handone.Why ?Becausei fweaskanyi nt endi ngent repr eneurwhatpr ojector
producthe/ shewi llsel ectandst artasanent erpr ise, theobv i
ousanswerhe/ shewoul d
giveisonet hathav ingagoodmar ketandi spr ofitabl e.Butt hequest ioni showwi t hout
knowi ngt hepr oductcoul doneknowi tsmar ket ?
Whosemar ketwi l
lonef i
ndoutwi t
houtact ual l
yhav ingt hepr oduct ?Whosepr of i
tabi li
t y
willonef i
ndoutwi thoutact uallysel li
ngt hepr oduct ?Ther ear eot herpr obl ems, besi des.
Whi l
et ryingt oi dent i
fyt hesui tablepr oductorpr oject , thei nt endi ngent repr eneurpasses
throughcer tainpr ocesses.
Thepr ocessesatt i
mescr eateasi tuat i
on, orsay , dilemmar esembl ing‘ HenorEgg’
controv ersy .Thati s, atonepoi nt ,t
hei nt endi ngent repr eneurmayf indonepr oductor
projectasanoppor tuni tyandmayenchantandl i
kei t, butatt heot hermomentmay
disli
keandt urndowni tandmayt hi nkf orandf indot herpr oductorpr ojectasan
oppor tunit yf orhi m/ her .Thi spr ocessofdi lemmagoesonf orsomei nt endi ng
entrepreneur sr ender ingt hem i nt ot hepr obl em ofwhatpr oductorpr ojectt ost art.Then,
howt oov er comet hi spr oblem ofpr oducti dent ificat ionandsel ect i
on?
Onewayt oov er comet hi sdi l
emmat icsi tuat i
oni st oknowhowt heexi stingent repr eneur s
i
dent if
iedt heoppor tuni tyandsetupt heirent erpr ises.Ani nv est i
gat ioni ntot hehi st or ical
exper i
encesofI ndi ansmal lent erprisesi nt hi sregar dr ev ealssomei nt erest ingf act or s.
Toment iont hei mpor tantones, t
heent repr eneur ssel ect edt hei rpr oduct sorpr oject s
basedon:

a.Thei
rownorpar
tner
s’pastexper
iencei
nthatbusi
nessl
i
ne;
b.TheGov er nment ’spr omot ional schemesandf acili
tiesof fer edt orunsomespeci fi
c
busi nessent er prises;
c.Thehi ghpr of i
tabi lityofpr oduct s;
d.Whi chi ndi cat ei ncr easi ngdemandf ort hem i nt hemar ket ?
e.Theav ai l
abi lit
yofi nput sl iker awmat erials, labour ,etc.atcheaperr at es;
f.Theexpansi onordi v er sificat ionpl ansoft hei rownoranyot herongoi ngbusi ness
knownt ot hem;
g.Thepr oduct sr eser v edf orsmal l-scaleuni t sorcer t
ainl ocat ions.
Now, hav i
nggai nedsomei deaonhowt heexi stingent repr eneur ssel ect ed
pr oduct s/pr oject s, thei nt endi ngent r
epr eneurcanf indawayoutoft het angl eofwhi ch
oppor tuni ty/pr oduct / pr ojectt osel ectt ofinal lypur sueasone’ sbusi nessent erprise.
Oneoft heway sempl oy edbymostoft hei nt endi ngent repr eneur stosel ectasui t able
pr oduct /proj ecti st of irst l
ygener at eideasaboutaf ewpr oduct s/pr oj ect s.Accor dingl y
,
whatf ollowsnexti sadi scussi oni deagener at i
onaboutpr oduct s.
IdeaGener ation:
Sour cesofI deas:
Inasense, oppor tuni tyi dent ifi
cat i
onandsel ect ionar eaki nt o, whati st er medi n
mar ket i
ngt er mi nol ogy ,‘newpr oductdev elopment .’Thus, pr oductoroppor tunity
i
dent i
f i
cat ionandsel ect ionpr ocessst ar t
swi tht hegener at ionofi deas, orsay ,i
deas
aboutsomeoppor tuni tiesorpr oduct sar egener atedi nt hef i
r sti nstance.
Thei deasaboutoppor tuni tiesorpr oduct st hatt heent repr eneurcanconsi derf or
sel ect ingt hemostpr omi si ngonet obepur suedbyhi m/ herasanent er pr ise, canbe
gener atedordi scov er edf rom v ar i
oussour ces-bot hint er nal andext ernal .
Thesemayi ncl ude:
(i)Knowl edgeofpot ent ial cust omerneeds,
(ii
)Wat chi ngemer gingt rendsi ndemandsf orcer tainpr oduct s,
(ii
i)Scopef orpr oduci ngsubst i
tut epr oduct ,
(iv)Goi ngt hroughcer tainpr of essi onal magazi nescat er ingt ospeci fici nt erest slike
elect roni cs, comput er s, et c.,
(v)Successst oriesofknownent repreneur sorf riendsorr elat ives,
(vi)Maki ngv isitst ot r adef airsandexhi bit i
onsdi splayingnewpr oduct sandser vices,
(vii)Meet i
ngwi tht heGov er nmentagenci es,
(viii
)I deasgi venbyt heknowl edgeabl eper sons,
(ix)Knowl edgeaboutt heGov er nmentpol icy , concessi onsandi ncent iv es, li
stofi tems
reser vedf orexcl usi vemanuf act ur einsmal l-scal esect or ,
(x)Anewpr oducti ntroducedbyt hecompet itor ,and
(xi)One’ smar keti nsi ght st hr oughobser vat i
on.
Innut shel l,apr ospect iveent repr eneurcangeti deasf orest abl ishi nghi s/herent er prise
from v ar i
oussour ces.Thesemayi ncludeconsumer s, exi stingpr oduct sandser v
ices
pr esent lyonof fer,di st ribut ionchannel s, thegov ernmentof ficials, andr esear chand
dev elopment .
Ident ifyingt heBusi nessoppor tuni ty
: Today '
seconomyt akesal otmor et hanhopet oget
peopl et opur chasey ourpr oduct sorser vices: Newbusi ness- bui ldingpr act i
cesar e
requi redt oexpendt hebusi ness.Cr aftingapl ani snecessar yf orqui ckandef fectiv e
busi ness.Ar oadmapt hatwi llinf usenewener gy ,enthusi asm andv i
si oni ntoy our
company '
sgr owt hpl ansi spossi blet hrought hei mpl ement ationoff ol l
owi ng7st epspl an
St ep1:Speci aliationf ocus.I nsmal l
,busi nessest hatt heent repr eneurf eel sheorshe
mustdoev ery thingt he" bi gguy s"dot ocompet e.Thet ruthi ssmal l
-busi nessowner scan
real lynev ercompet ei nt hesameway .Soi t '
sessent i
al forsmal lbusi nessest o
differ ent i
at et hemsel vesbyf ocusi ngont heuni quecapabi liti
esandcor epr oduct st hey
br i
ngt opr ospect s.Speci al i
zat i
oni st heent repr eneur 'sgr eat estasset .
St ep2:Si mpl eCommuni cat ion:Ev erycompanyneedsi sasi mpl e" elev at orpi t
ch. "That 's
ashor t,conci semessaget hatcancommuni cat emessaget oapr ospecti n30secondsor
l
ess.I texpl ainst hev al uey ourpr oductorser vicepr ovidessot hepr ospectunder st ands
whyi t'sappl icabl et ot hem.Tr yt hi slit
tleexer ciset otesty ourpi tchcl ar ityquot ient .Ask
someonewhodoesn' tknowwhaty oudot ol i
stent oy ourpi tch.Expl ai
nwhaty our
companydoes, andwat chf orsi gnsoff atigue- ey eswat ering, l
idsget t
ingheav y,andsoon.
Ofcour se, youmayhav et heper fectpi t
ch.Buti fy oudon' t,y ou'llrecogni zei trightaway
from v erbal andphy sical responses.
Step3:Pr i
or i
tyonBusi nessst r engt h:Knowl edgeaboutOr gani zat ionst rengt hwi llhel p
thebusi nesst or eachatgoal s.St ayt ruet obusi nessandwhati st hest rengt hofbusi ness:
Stretchandgr owbusi nesscapabi liti
esi nal i
gnmentwi thy ouri nter estsandexper tise.
Alway si tmaymakesur ethatbusi nessf ocusedony ourpr iority"A"t asksanddel egat e
yourBsandCs.
Step4:Shar et hest rengt h.Shar ingofbusi nesscapabi li
tieswi ththet ar getcl i
ent s' needs
i
sanexcel lentwayt odet ermi nebusi nessser vicest r
at egy .I twi llhel pt of indt ono
requirementofexper tiseser vice.Dev elopal i
stofdeci sion- maki ngcr it
er iathatt he
businessexpect sf rom cl ientst ousewhenchoosi ngapr ov ideri ny ouri ndust ry.Then
rankt hebusi nessandf indoutt heposi tion.Af tert hi si ntenseev aluat i
on, makesur et hat
yourel ev atorpitchi sst ill
ont ar get .
Step5:Av ailabil
ityut i
lization.Whendeci dingonamar ket ingst rategy , impl ement ation
shoul dmat cht hebusi nessst rengt handcanmeett hecust omerneeds.Toppr ev ious
mar ketingt ool sshoul dbei dent ifiedandnewi deasshoul dbeadded.Mar ket i
ngt ool s,
alsobeev aluatedf rom af inanci al andcostbasi s.Deci sionshoul dbet akenont hebest
returnbywhi cheacht ool willbear ev enuepr oduci ngr esul tinonewayoranot her .
Step6:Act ionpl ani mpl ement ation.Rev iewoft heest ablishedgoal si n3or6mont hscan
helpt of i
ndoutt heachi evementst at us.Mi ssingt het ar getshoul dbequest ionedf or
appr opriatet oolsf orcust omer s, integr atespeci fi
cst r ategyf orgoal achi evement .
Step7:Execut et hepl an.Thi sf i
nal st epi sr eall
yst raight for war d: Justdoi t:Compl etet he
dailyact i
ons, andt hendosomet hi ngext rat oaccel er atey oursuccesspl an.Don' tl et
unplannedt askswast epr ecioust imet hatshoul dbeappl iedt owar dr eachi ngy ourgoal .
Andmostofal l
-enjoyt hepr ocess.

Busi nessoppor t
uni t
iesi nv arioussect ors
Busi nessOppor t
uni ti
esav ailablef orSmal lEntrepr eneursi nI ndi a
Twent yBusi nessOppor tuni ti
esav ail
abl ef orSmal lEnt r
epreneur sinI ndia!
Whi let hinkingaboutbusi nessoppor tuni t
ies,Iam r emi ndedoft hest atementofDougl as
MacAr thurgi venasopeni ngquot ation: “Ther eisnosecur i
tyont hisear th–onl y
oppor t
uni ty.”Regar dingt heav ail
abi l
ityof( business)oppor tuni ties,thev iewsofThomas
J.Wat sonal soseem qui tewor thciting: “Oppor tunitynev erknocksont hedoor .Youhav e
toknockonoppor tunit
y ’
sdoorandt heyar eallaround. ”
Thef actr emai nst hatt her ear eoppor tuni t
iesav ail
abl eevery wher ei nandar oundus.What
i
sact ual l
yr equi redi stohav et hel ensest oseeandr ecognizet hesame.Ther eexi st
i
nnumer abl ebusi nessoppor tuniti
esi nt heenv ironmentf orunl eashi ngbyt he
entrepr eneur s.
Thev ar i
ousbusi nessoppor tuniti
es, forexampl e,av ail
ablei nt heenv ironmenti nclude
butar enotconf i
nedt ot hef ollowingonl y:
1.Tour ism:
Bynow, tour ism hasemer gedasnumberonel ar gestsmokel essandf astgr owi ng
i
ndust ryi nthewor ldduet oi tsampl epr omi sesandpr ospect s.Pr esent ly ,i
taccount sf or
8%oft hewor l
dt radeandar ound20%ofser vi
cesect orint hewor ld.
Evidencesi ndi catet hatmanycount r
ieshav eprogr essedf rom backwar dt odev el opingto
dev eloped, mai nl
yduet ot our ism dev elopment .Forexampl e, t
our ism i ndust rycont ri
butes
tomor et han70%oft henat ional i
ncomeofsomeoft hecount ri
esl ikeMal aysiaand
Singapor e.Howev er,i
tsshar et othenat ional i
ncomeofI ndiai sst i
lldismal lylowat2. 5%.
ThoughI ndiashel tersar ound15%oft hewor l
dpopul ati
onwi thi ts2. 5%oft hewor l
d
terr
itor y,itaccount sforonl y0. 40%i nt hewor l
dt our i
sm mar ket .Howev er,thepr ognost ic
pictureoft heI ndiant our ism i snotbecauseofl ackoft ourism pot ent i
al, butbecauseof
unleashi ngoft heampl et our ism pot ent ial sheisendowedwi th.
Infact ,Indi at ooi sat reasur et rovef ort our ism dev elopment .Shepossessesl ong,
unspoi ledbeachesofgol densandsandsway i
ngcoconutt rees; from wi ndingt railst hat
takey ougent lyupt hesnowysl opesofagr eatmount ainr angel i
ket heHi mal ay as
unfur lingi magesofquai nt , ti
mel esscommuni ties; f r
om spr awl ingf or tsandbr eatht aki ng
palacest hathi dei nt heirbosomssomanyt al esofi ntri
gueandambi ti
ons, lov eand
betray al; from wi l
dlifesanct uar i
esandseawor lds, Di sneyl andsandshoppi ngf estival s.
Ther ehar dlyappear st obeat hi ngt hati snotwor thyofsomeshower ingoft our ist’s
attent ionandat tract ion.Recogni zi ngt heI ndi a’sv astt our ism pot ent ial, theWor ldTr av el
andTour ism Counci l(WTTC)haspr edi ct ed: “Indi ahaspot ent ial tobecomenumberone
tour i
stdest i
nat ioni nt hewor ldwi tht hedemandgr owi ngat10. 1%perannum. ”
2.Aut omobi l
e:
Indiahasmademuchheadwayi naut omobi lei ndust ryandbynowhasemer gesasahot
spotf oraut omobi lesandaut o- component s.Acost -ef fectiv ehubf oraut ocomponent s
sour ci ngf orgl obal aut omaker s, t heaut omobi l
esect ori sbyal lindi cat ionsapot ent ial
sect orf orent repr eneur si nI ndi a.
Thisi sconf ir
medbyar ecor di ncr easer egi ster edbyaut omobi lei ndust r yinI ndi a.The
automobi lei ndust ryr ecor deda26percentgr owt hi ndomest icsal esi nt hey ear2009- 10.
ItisI ndi a’ sst rongsal est hathav emadehert hesecondf ast estgr owi ngaut omobi l
e
mar ketaf terChi nai nt hewor ld.
Indiabei ngoneoft hewor ld’sl ar gestmanuf act urer sofsmal lcar swi thast r ong
engi neer ingbaseandexper tise, ther ear est illmanysegment sunt appedandun- ser ved
thoseent r epr eneur scanf ocusoni nI ndi a’saut omobi l
eandaut ocomponent ssect ori n
futur e.
3.Text iles:
Indiai sf amousf ori t
st ext ilessi ncel ongt ime.Whati swor thment ioni ngt hatt hest yleof
appar el isuni quef rom r egi ont ost at e, thus, of f
er ingadi ver sifiedmar ketf orappar el /
textilepr oduct si nt hecount ry?I nv iewoft hi s, I
ndi ahol dsgoodpot ent ial t
ogr owasa
pref erredl ocat ionf ormanuf act ur ingt ext il
est aki ngi nt oaccountt hehugedemandf or
garment s.
Placesl ikeTr ipur aandLudhi anaar e, forexampl e, nowexpor thubsf ort extilesi nt he
count ry .Abet terunder st andi ngoft het ext i
lesmar ket sandt hev ar iedcust omerneeds
cangr eat lyhel punl easht hepot ent i
al thissect orhol dsi nourcount ry.
4.Soci alVent ur es:
Likemanyot herdev elopment al act i
v ities, ent repr eneur shi pdev elopmenti sal socont ext-
speci fic.Ther ecentsoci al issuespr ov idi ngadi ffer entent repr eneur i
al cont exthasgi v en
emer gencet oy etanot herbr eedofent repr eneur shi pcal l
ed’ soci al ent repr eneur ship.Wi th
av iewt oamel ior atet hesoci al fabr i
coft hesoci ety ,increasi ngnumberofent repr eneur s
hasst ar tedt hei rsoci al v ent ur es.
SEWAandLi zzatPappad, forexampl e, aresucht wosoci al vent ur eshar dlygetmi ssed
whi lement ioningaboutsoci al ent repr eneur shi p.MuhammadYunus’ s‘ Gr ami nBank’ in
Bangl adeshi st hewor l
dwi deknownsoci alv ent ureoft her ecentt imes.
Ther ei smy ri
adofsoci al i
ssuesorpr obl emsi nt hecount rysidei nI ndi a, thus, of fering
oppor tuni tyt oy oungent repr eneur st opl ungei ntot hissect or .Howev er ,plungi ngi nto
soci al v ent uresi sasmuchusef ul issomuchchal lengi ngal so.
5.IT&I TES:
Indiai sknownf ori tsl ar gestpool ofwor ldcl asssof twar eengi neer ’swor ldov er.ITsect or
hascont ribut edsubst ant i
al lyt ot heI ndi aneconomy .Wi thoneoft hel ar gestpool of
softwar eengi neer s, Indi anent r epr eneur scansethi ghert arget sinhar dwar eandsof twar e
dev elopment .
Wi t
hmor eov erseascompani esout sour cingcont r
act stoI ndi a, busi nesst obusi ness
solut ionsandser v i
cesemer geaspot ent i
al act ivitiesf ort heknowl edge- based
entrepr eneur si nf utur e.Ent repr eneur scancashi nont her isei ndemandf orI Tser v i
ces
withi nnov at i
veandcostef fect iv esol utions.
6.Engi neer ingGoods:
Indiacont inuest obeoneoft hef ast estgr owi ngexpor t
er sofengi neer i
nggoods, growi ng
atar at eof30. 1percent .Thegov er nmenthassetat ar getof$110bi llionby2014f or
totalengi neer i
ngexpor t
s.Ent r
epr eneur smustcapi tali
seont heboomi ngdemandf or
product sf rom theengi neer ingi ndust ry
.
7.Fr anchi sing:
AsaboonofNewEconomi cPol i
cy1991oft heGov ernmentofI ndia,Indi aisnowwel l
connect edwi tht hewor ldeconomi es.Hence, franchi singwi thleadingbr andst ospr ead
acrosst hecount rycoul dal soof f
erampl eoppor tunitiesf ory oungent repr eneur s
especi al lyinser vicessect orlikeeducat ionandheal th.Wi thmanysmal ltownsdev elopi
ng
ataf astpacei nIndi a, therei sv astscopef orspr eadingf ranchisingbusi nessi nt he
count ry sidei nfut ure.
8.Educat ionandTr aining:
Knowl edgebei ngpower ,ont heonehand, andGov er nment ’
sincreasingemphasi son
spreadi ngeducat i
on, ont heot her,therei sagooddemandf oreducat ionandonl ine
tutorial ser vi
cesi nt hecount ry.Wi thgoodf acil
i
t i
esatcompet it
iverates, Indiacanat tract
mor est udent sf rom abr oadi ncomi ngy ear ssignsofwhi chhav ealreadyst arted.Need-
basededucat ional pr ogr ammeswi thinnov at
ivet eachi ngmet hodscanhel pi nabi gway
makeeducat i
ondev elopandf lourishasani ndust ryint hecount ry.
9.FoodPr ocessi ng:
Broadl y ,foodpr ocessi ngi ndust ri
esi ncludecanner y,meatpacki ngpl ant ,slaught erhouse,
sugari ndust ry,veget ablepacki ngpl ants, industrialrender ing,etc.India’smai nstayi s
agricul ture.Ent repr eneur scanexpl or emanyopt ionsi nt hef ood- gr
aincul tivati
onand
mar ket ingsegment s.I nef f
icientmanagement ,lackofi nf rastructure,pr operst orage
facili
tiesl eadst ohugel ossesoff oodgr ainsandf reshpr oducei nIndia.
Unf ortunat ely,verysmal lpor tionofourf oodpr oduct ioni spr ocessedf ormanuf acturi
ng
purposesasi sev identf rom t hef ollowingf i
gures:

Likewi se, t
hel ev el ofpr ocessingi nper ishabl ef oodsl i
kef ruit
sandv egetabl es( 2.
2%) ,mi l
k
andmi lkpr oduct s( 35%) ,meat( 21%) ,poul t
ry( 6%)andmar inepr oduct s(8%)i salsoata
quitelowl evel oft ot al product i
on.Thus, iti
sev identf r
om abov ef igurest hatt here
remai nsal otofscopef oragr i-
businessoragr i-pr eneurshipdev elopmenti nt hecount r
y.
Assuch, entrepr eneur scanaddv al
uet ot hesepr oducewi thpr opermanagementand
mar ket i
ngi nitiatives.Thepr ocessedf oodmar ketopensagr eatpot entialfor
entrepr eneur sbei tf astf ood, packagedf oodoror gani
cf ood.
Thatt her ewi llbemor eandmor edemandf orready madeorpr ocessedf oodi ncomi ng
day sisal readyi ndicat edbyt hemet eor iti
cgr owt hofMumbai ’
sDabbawal a.Thus, f
ood
processi ngi ndust ryof fer syetmor eoppor t
uni ti
esf orentrepreneur shipdev elopmentt o
establishandr unf ood- basedi ndustries.
10.Cor por at
eDemands:
Ther ewi llbeagooddemandf orformal at t
irewi thmor ecompani esopeni ngt heiroffices
i
nI ndia.Peopl ewhocanmeett hisdemandi nacost -
effectivewaycanmakeagood
business.Wi thcor por ategiftingget ti
ngv erypopul ar,thisisalsoauni quebusi nessto
explorei ngr owi ngur bancul tur einIndi a.
11.Ay ur vedaandTr adi ti
onal Medi cine:
Indiaiswel lknownf ori tsherbal andAy urvedicpr oduct s.Wi t
hi ncreasingawar eness
aboutt heill-
ef fectsofal l
opat hicmedi cines, ther ewi l
lbeahugedemandf orcosmet ics,
natural medi cinesandr emedi esi ncomi ngt ime.
12.Or gani cFar mi ng:
Organi cf armi nghasbeeni npr act i
cei nI ndiaf orl ongt ime.Thatt hei mpor tanceof
organi cf armi ngwi l
lassumei ncr easi ngi mpor tancei nt hecount ryi sev identbyt hef act
thati ncr easi ngnumberofconsumer sespeci allyf or eigner shav ebeenpr ef erringt oonl y
organi cpr oduct s.
Ther ef or e, thepr ospect i
v eent repr eneur scanf ocusonbusi nessoppor tuni t i
esi nt hi s
promi si ngsect oroft hecount ry .Yes, manysmal l-
timef armer shav eal readyadopt ed
organi cf armi ngbutt hehugedemandi sst il
l unmetwhi chof fer sgoodoppor tuni tiesf or
thoseagr i
-pr eneur swhocanpr omot eor gani cf ar mi ngonal ar ge- scal ei nt hecount ry.
13.Medi a:  
Themedi ai ndust ryhasal sohugeoppor tuni tiest oof fert oy oungent repr eneur s.Wi ththe
hugegr owt hoft hissegment , anybusi nessi nt hi sf ieldwi l
l hel pent repr eneur sr eaphuge
benef its.Tel ev isi on, adv er tisi ng, printanddi gital medi ahav eseenaboom i nbusi nessi n
ther ecentt i
mesandi sl ikel yt ogr owmor ei ncomi ngt imes.
Accor di ngt oar epor tpr epar edbyt heFeder at ionofI ndi anChamberofCommer ceand
Indust ry( FI CCI ),digitisat ion, regi onal isat ion, compet i
tion, innov at i
on, process, mar ket ing
anddi st ribut ionwi lldr ivet hegr owt hofI ndi a’smedi aandent er tainmentsect or
further mor ei ncomi ngt imes.
14.Packagi ng:
Wi thChi nai nv adi ngt hemar ket swi thcheappl ast icgoodsandpackagi ngmat erial s, there
i
sagoodoppor tunityt odev elopgoodpackagi ngmat erialst omeetdomest icandf orei gn
demand.Ther ei sahugedemandf rom v ar ioussect orsl ikeagr icul tur e,aut omot iv e,
consumergoods, heal thcar ei nf rast ruct ureandpackagi ngsect or sf orpl ast i
cs.
15.Fl or icul tur e:
India’sf lor i
cul tur esegmenti ssmal landunor gani zed.Ther ei sal ott obedonei nt his
l
ucr at ivesect or .Thegl obal tradei nf lor i
cul tur epr oduct si swor th$9. 4bi llion.Wi tha8per
centgr owt h, itisexpect edt ogr owt o$16bi l
lionby2010.I ndi a’sshar einwor ldt radei s
j
ust0. 18percent .Thi si sahugemar kett obet appedconsi der ingt her isingdemandf or
freshf lower s.Mor eawar enessandbet t
erf armi ngandi nfrast ruct ur ecanboostexpor ts
off l
ower sincomi ngt i
mes.
16.Toy s:
Anot herev er gr eeni ndust ryi st oymanuf act ur i
ng.I ndi ahaspot ent ial tomanuf act ur ecost -
effect iveandsaf et oy sf ort hewor ld.Wi thChi neset oy sbei ngpul l
edupf ort oxins, the
mar ketf orsaf eandgoodqual ity,toy sbeckonsI ndianent repr eneur s.
17.Heal thcar eSect or :
India’sheal t
hcar esect ordi smal ti
ll t
heot herdayhasnowgoodpr ospect st odev elopi n
futur e.Thepr ivat esect or , thati s,indi vidual ent repr eneur scanpl ayav i
tal rol ei n
dev elopi ngt hissect or .Wi thmedi cal t our i
sm al sogai ni ngmoment um, thesect orcan
attractf or eigner swhoar el ooki ngf orcost -ef fect ivet reat menti ncount riesl ikeI ndi a.
18.Bi ot echnol ogy :
Af t
ert hesof t war esect or ,bi ot echnol ogyopensahugepot ent i
al forent repr eneur si nI ndia.
Global ev idencesconf irmt hatagr i
cul tural bio¬t echnol ogyhasamaj orimpacton
agr i
cul tur alpr oduct iv i
ty .Thati swhyi ncr easi ngemphasi shasbeengi v
ent or esear chand
dev elopmenti nt heagr o- biot echsect orwi thanai mt opr oducecr opswi thhi ghl ev el of
toleranceagai nstcol d, heatandsal i
ni ty.
Anumberofi mpr ov edf oodpr oduct shav eal sobeendev eloped.I tisexpect edt hatwi th
i
ncr easei ninv est menti nr esear chanddev elopmenti nI ndia, agr o-biot echnol ogywi ll
furtherdev elopand, int ur n, Indi anagr icultur ewi lldev elop.Thef ut ureent repr eneur scan,
theref or e, l
ookatapl ethor aofopt ionsav ai l
abl ewi t ht heappl i
cat i
onofbi ot echnol ogyi n
agr i
cul tur e,hor ticultur e, ser icul ture, poul try, dai ryandpr oduct i
onoff ruitsandv eget ables.
19.Ener gySol ut ions:
Inapowerst ar vednat ionl ikeour s, t
heneedt odev elopcost -effect i
v eandpower -
sav ing
dev icesi sgai ningev eri ncr easi ngsi gni ficance.Ther ei sahugedemandf orl ow- cost
sust ainabl eener gysav ingdev icesaswel l.Thegov ernmenthasal readyunv ei l
edt he
Nat ional Sol arMi ssionwhi chhassetat ar getof20, 000MW ofsol argener at ingcapaci t y
byt heendoft he13t hFi veYearPl an.
Pr i
meMi nist erManmohanSi nghhadur gedt hei ndust ryt oseet hehugebusi ness
oppor tuni tyandsetup‘ SolarVal leys’ ont hel inesoft heSi l
iconValleys.Thesesol ar
valley scanbecomehubsf orsol arsci ence, sol arengineeringandsol arr esearch,
fabr icationandmanuf act uri
ng.Sot her ei sabi goppor tuni
tyf orentr
epr eneursinthi s
sect oraswel li
nourcount ry
.
20.Recy cl i
ngBusi ness:
E-wast ewi llr
iset oalar mi ngpr opor tionsi nthedev el
opingwor ldwit
hinadecade, wi th
comput erwast ei nIndi aal onet ogr owby500percentf r
om 2007l evel sby2020,
accor dingt oaUNst udy .Ther efor e,thi ssect oral soopensnewv i
stasofv i
ablebusi ness
oppor tuni tyforent repreneur sint ermsofe- wast emanagementanddi sposal acti
vitiesin
l
ar gesi ze.
Recent l
y, anat i
onal lev elconf erenceonent repr eneurshipcal l
edEntrepr eneurIndia2011
washel donJul y15t hand16t hatHot el Claridges, NewDel hi.Theconf erencewasbui l
t
acr osst hesev enI ’
sofent r
epr eneur shi p:
(i
)I nspi re,
(i
i)I deat e,
(i
ii
)I ndi vidual ,
(i
v)I ncubat e,
(v)I nnov at e,
(vi
)I nv est ,and
(vi
i)I nter nat i
onalizet odi scussanddel i
ber ateonI nnovationandEnt r
epr eneurshipf or
unleashi ngbusi nessoppor tuniti
esav ailablei nt hecount ry.
21.Gr eenbusi ness
22.Ev entmanagement
23.Agr obased( Food, fruit,veget ablespr ocessi ng,refri
ger ati
on,andt ranspor t
ation)
24.Mi ner alwat er
25.Cour ierser vices
26.I nsur ancesect or
27.Tel ecom
28.Pl ast ic
29.Tour ism

Formal i
tiesf orset tingupsmal lent erprisesinmanuf act uringandser vi
ces
STEPSFORSTARTI NGSSI s/MSMEs
Assoonasaper sondeci dest obecomeanent repr eneurandt ost artaMSME, heis
requir
ed
totakeanumberofst epsandf ormal iti
esoneaf tertheot her.Theyar easf ollows:
1)Scanni ngofBusi nessEnv ir
onment : i
tisessent i
al ont hepar toft heent r
epr eneurt o
studyandunder standt hepr evaili
ngbusi nessenv ir
onment .Entrepr eneurshoul dscant he
businessoppor tuni tiesandt hreat sint henewenv i
ronment .Tost udyt headmi nistrati
ve
framewor k,procedur e, rulesandr egul ationsandot herf ormal it
iesi mpl ement edbyt he
government .Thepot ent ialent repreneurmustassesshi sowndef iciencies, whi chhecan
compensat ethroughr aining.
2)Select ionoft hePr oduct :Thev erysuccessofone’ sv ent urewi lldependont he
rati
onalityofhi sdeci sioni nt hi
sr egard.Theeconomi cv iabili
tyoft hepr oductcanbe
ascertainedbyconsi der i
ngcer t
aindemandaspect ssuchasv olumeofdemandi nthe
domest icmar ket,v olumeofdemandi nt heexpor tmar ket,volumeofpot ential demand, a
degreeofsubst i
tut i
onofanexi sti
ngpr oductetc.Thepr ospect iveent r
epr eneurhast o
i
dent i
fyt hepr oductbasedonmar ketresear chormar ketsur vey.
3)Select ionofFor m ofOwner ship: Hehast osel ectsol epr oprietorshi porf ami ly
owner shiporpar tner shi porpr ivatelimi t
edcompanyast hef orm oft heowner ship.
4)Select ionofLocat ionandSi te:Locat ionisselect edaf terconsi der ingcer tainf actors
suchasnear nesst omar ket ,sourcesofmat eri
alandl abour ,moder ni nfrastruct ure
faci
li
tieset c.Theent repr eneurhast ochooseasui tabl eplotf orthef actory.Hemay
purchasel anddi r
ect lyorchoose
from ani ndust r
ial areadev elopedbySt at eDevelopmentCor porationsl ikeSI DCO, or
Director ate
ofIndust ries.I nor dert ost i
mul atei ndustr i
al growt h, thegov ernmentofKer alais
prov i
ding
i
nf r
ast ruct ur al assi st ancebywayof
(1).Dev elopi ngar eas.
(2).Dev elopmentPl ots.
(3).I
ndust rial est at es, and
(4).Mi ni indust ri
al uni ts.
5)Desi gni ngCapi talSt ruct ur e: Apar tfrom t heowncapi tal,hemaysecur ef inancef rom
fri
endsandr el atives, terml oansf rom banksandf i
nanci al i
nst i
tutions.
6)Acqui ri
ngManuf act uringKnow- HoworTechnol ogy :Manyi nst itutionsofgov ernment ,
resear chl abor ator ies, resear chanddev elopmentdi vi
sionsofbi gi ndust riesandcer tain
consul tancyagenci espr ov i
det hemanuf act ur ingknow- how.
7)Pr epar at i
onofPr ojectRepor t:Ther epor tusual lycov ersi mpor tanti temsl i
kesour ces
off i
nance, av ai l
abi lityofmachi ner yandt echni cal know- how, sour cesofr awmat erial and
l
abour ,
mar ketpot ent ial andov er allprof i
tabilit
y.
8)Regi st r
at ionasaSmal lScal eI ndust ry: Regi strat i
onwi thDepar t mentofi ndust ri
esand
Commer cei sonl yopt ional .Ther eisnost atut oryobl i
gat i
on, butsmal l scal eindust ri
es
canav ail
variousf aci l
ities, incent i
v esandconcessi onsof fer edbyt hest ateaswel l ascent r
al
gov ernmentonl yi ft heyr egi ster edasSSI .Ther egist r
at i
onwoul dbedonei nt wost ages.
Pr ov isionalRegi strat ion: Itwi llbev alidf oroney earwi thpossi bl ethr eeext ensionsof
six
mont hseach.I thel psent repr eneurt otakenecessar ystepst obr ingt heuni tsinto
existence.The
prov i
sional regi strat ionmayenabl et hepar tyt o:
(1)Appl yt oNSI C/ SI DOandot heri nstit
utionsf orpr ocur ingmachi nesonH. Pbasi s.
(2)Appl yf orpowerconnect ion.
(3)Appl yt ol ocal Bodi esf orper missi ont oconst ructt heshedt oest abl i
shauni t.
(4)Appl yf orf i
nanci al assi st ancet oSFC/ Banksorot herf i
nanci al institutionsont hebasi s
ofpr ojectr epor t.
(5)Obt ainsal est ax, exci ser egistrat i
onet cwhenev err equired.
(6)Appl yf orashedi nani ndust ri
al estate/dev elopmentsi teinani ndust rialarea/
mat erial for
const ruct ionofshedast hecasemaybe.
9)Obt ainingSt atut or yLi cence: Anyper sonshoul dobt ainthef oll
owi ngl icencesand
certif
icat esbef orest ar ti
ngt hev ent ure:
(A)Li cencef rom LocalBodi esFor
(1)Const ruct ionoft hebui l
ding.
(2)Inst allat i
onofpl antandmachi ner y.
(B)Li cencef r om t heDi r
ect orat eofFact or iesandBoi lersFor :
(1)Appr ov al off act or ybui lding.
(2)Regi strat ionundersect i
on6, 7and85oft heFact oryAct .
(C)NoObj ect ionCer tificat ef rom St atePol lut i
onCont rolBoar d.
10)Appl yf orPowerConnect i
on: Ther ear e2cat egor i
esofpower ,theLowTensi on( LT)
and
HighTensi on( HT) .Aconsumercanav ail LTonl yi ftheconnect edl oadi s75HPand
below.I f
connect edl oadi sbet ween75HPand130HP, theconsumerhast heopt iont oav aileither
LT
suppl yorHTsuppl y .
11)Ar rangementofFi nance:Ent repreneurneedst oacqui r
eassi st sof2ki ndsnamel y
Fixedasset sandcur rentasset s.Longt ermf inancei sneededt oacqui ref ixedasset sl i
ke
l
and, bui lding, pl antandmachi ner yandf orsecur i
tydeposi t
s.
Shor tt ermf undsar er equi redf oracqui ringcur rentasset s.Cur rentasset sar eessent i
al
fort hedayt odaywor kingoft heindust ry .Longt ermf undsi ncl udesowner ’
scapi tal,
subsi dyf rom cent ral/st ategov t.,personal borrowingsf rom f riendsandr elativesandl ong
terml oansf r
om f i
nanci al instituti
onl ikeKFCandKSI DC.
12)Regi strat i
onundert heSal esTaxAct :Busi nessent er prisesar esubj ectt othree
i
mpor tant
taxes-I ncomeTax, Exci seDut yandSal eTax.I ncomet axi sl ev iedoni ncomeasdef i
ned
undert he
ITActof1961.I tisr ev enueofCent r
al Gov ernment .Exci sedut yisat axlev i
edbyt he
cent r al
Gov er nment .I
tist hedut yl evi
edont hecostofgoodsmanuf act uredwi thinacount ry.
Salest axi s
l
ev iedwhenev ergoodsar epur chasedf rom wi thint hest at e.Whengoodsar epur chased
from
out sidet hest ate, Cent ral SalesTaxi sl ev ied.Appl icat ionf orr egi strationshoul dment ion
allpl aces
ofbusi nessdeal eri ncl udi ngt hegodowni nwhi cht hegoodsar est ored.Thef ol
lowing
paper sar et o
besubmi ttedf orr egi strat ion.
1)Appl i
cat ionf orr egi strat ioninFor m 1dul ysigned.
2)Count er foilofchal lanf orRs.100t owar dsr egistrat ionf ees.
3)Ret ur nofEst imat edAnnual Turnov eri nFor m No.10.
Ont hebasi sofdecl ar ationoft heant i
cipat edt urnov erandnat ureoft urnov er,regi
stering
aut hor i
t y
maydemandsecur ity, whi chi snor mal ly½t imesoft heant i
ci pat edt axdue.
13)I nst al l
at i
onofMachi ner y:Machi ner yshoul dpr ef er ablybei nstal l
edaspert heplant
l
ay out .
14)Recr uitmentofManpower :Thenumberandt ypeofwor ker si st obedeci ded.Af ter
this, the
requi r edwor kersshoul dber ecr ui
ted.
15)Pr ocur ementofRawMat er i
al:Ther awmat eri
al smaybepr ocur edindi genousl yor
mayhav et obei mpor tedbyt heent r
epr eneur .Thenextst epi st ost artpr oduct i
on, which
i
st akenupi ntwost ages-Tr i
al product ionandCommer cialpr oduct ionhav i
ng
successf ullytestmar ket edt hepr oduct , commer cialmar ket i
ngcanbeunder taken.
16)Appl icat i
onf orPer manentRegi strat ion: Fort his, appl i
cat ionf or m hast obemadet o
theGM ofDI Ct hroughI EO/Tal ukI ndust riesOf ficer.TheGM shoul di nformt he
ent repr eneuroft hedat eandt i
meofi nspect i
onoft heuni t.Onbei ngsat i
sf i
eda
regist r ationcer ti
ficat emaybei ssuedbyt heDi rectorat eofI ndust r
ieswi thi
nonemont hof
ther ecei ptoft heappl icat i
on.Theper iodoft hecer tificat ewhet herpr ovisional or
per manentwi l
l bef oraper iodof2y ear s.Renewal cer tificate
woul dbeaf fectedbyt heGM ( DIC)wi thinaper iodof3mont hsf r
om t hedat eofexpi ryof
cer ti
f icat e.

GOVT.REGULATORYFRAMEWORKFORMSMEs
Thegov t.hastwor olest oplayr
egulatoryroleandprotecti
v er
ole.Gov t.r
egulatesaswell
as
protectssmal l
business.I tpl
aystheregulatoryrol
ebyimposi ngcer tainrest
ri
ctionand
formali
ties
onsmal l busi
ness.Itprov i
desassist
anceandsuppor tt
osmal l business.
MEASURESTAKENBYTHEGOVERNMENTFORTHEPROMOTI ONOFMSMEs
Someoft hemeasurest akenbythegov ernmentar easfollows:
ADMI NISTRATI VEFRAMEWORK: Admi ni
strati
vemechani sm forSSIi sbeinglooked
afterbytheDepar t
mentofSmal l
ScaleIndust r
ies,
AgroandRur alIndustri
eswi t
hinthe
Ministr
yofI ndust
ry.Wi t
ht heDepar t
mentt hereisSmallIndustri
esDev el
opment
Organization
(SIDO)headedbyadepar t
mentcommi ssioner.SIDOhas27smal lindustri
esser vi
ce
i
nst it
utes,
31br anchi nst
itutes,
37ext ensioncent res,18f i
eldtesti
ngcentres, fourproduction
cent r
esand
twof oot weartr
ainingcentres.Topr ov i
dedi f
ferentservi
cesandsuppor ttovil
lageand
smal l
entrepreneursunderasi ngl er
oof ,
422Di str
ictsIndustri
esCentres( DIC)hav ebeensetup
to
cov er431di st
ri
ct soutofthet otalof436di stri
ctsoft hecount
ry .Nat i
onal I
nstit
uteof
Smal l
IndustriesExtensionTraining(NISIET)conductr esearchandtrainingpr ogrammesand
prov i
desconsul tancyservi
ces.Nat ional SmallIndustri
esCorporat i
on( NSIC)deal swit
h
mar ketingincl
udi ngGovernmentpur chasesandsuppl yi
ngmachi neryonhi repurchase.

POLI CYI NSTRUMENTS: Pol i

cyinst rument sadopt edbyt hegov ernmentt oencour aget he
growt hofSSIcompr ise:
(1)Fi nanci al incent ives.
(2)Fi scal incent i
ves.
(3)Gener alincent ives.
(4)Speci al i
ncent i
v esi nbackwar dar eas, and
(5)Reser v ationofi temsf orSSI .
(1)Fi nanci alI ncent iv es: SIDBIpr ov idesdi rectassi stance, amongot hersf orspeci ali
zed
mar ket ingagenci es, indust r
ialest ates, acqui sitionofmachi ner y/equi pment ,
both
i
ndigenousandi mpor ted,seedcapi talschemeandNat i
onal Equi t
yFundScheme, bill
s
rediscount inganddi rectdi scount ingscheme.St ateandLocal Gov er nmentpr ovi
des
fi
nanci al subsi diesl ikei nterestrat eandcapi tal subsidies, andwat erandel ectri
city
subsi di esandsubsi diesf ortheacqui sitionofl and.
(2)Fi scalI ncent ives: Thesecompr isei nv estment sallowance, taxhol i
day s, additi
onal
depr eci at i
onf ornewpl antandmachi ner yandst at
eandl ocal Government spr ovide
exempt ionf rom el ect ricitytari
ffs.
3)Gener alIncent ives: Thesei nclude, amongot hert hings, reservationofi temsf or
exclusi v epur chasesf r om SSI ,pricepr ef erenceov ermedi um andl argeuni tsi npubl i
c
sectorpur chasesandschemef orSel f-Empl oy mentt oEducat edUnempl oy edYout hs
(SEEUY) .
(4)Speci al Incent ivesi nBackwar dAr eas: Someoft heschemeswhi char eoper ational
are
concessi onal financescheme, transpor tsubsi dyscheme, intrestsubsi dyschemeand
i
ncome
taxincent ives, etc.
RESERVATI ONOFI TEMS:Aspert hepol icycer tainitemshav ebeenexcl usi velyreser v
ed
formanuf act uringi nt heMSMEsect or.Theobj ectiveist opr otectMSMEsengagedi nthe
manuf act uringofsuchi temsf rom t hecompet itionofmedi um andl argescal eunits.
STATUTORYBOARDS:Gov t
.hasset upsi xexcl usiveboar ds, namel y, (
1)Khadi and
Vil
lageI ndust ri
esBoar d.(2)Handl oom Boar d(3)Handi craf tsBoar d( 4)Coi rBoar d( 5)
Seri Cul tur eBoar d, and( 6)Smal l Scal eI ndust riesBoar d.
ESTABLI SHMENTOFI NDUSTRI ALESTATES: Indust r
ial est ateispl acewher ethe
requir edf aciliti
esandf act oryaccommodat i
onar epr ov i
dedbyt hegov ernmentt ot he
entrepr eneur st oest abl i
sht heirindust riest here.

ROLEOFNATI ONALMANUFACTURI NGCOMPETI TIVENESSCOUNCI L(NMCC) :

TheNMCCsuggestat hree-
pol
estruct
ur e,
“oneoft heef
fectiv
emeasur esf oraccel
erati
ng
manuf act
uri
nggrowthi nthi
ssegmentl i
esinpromot i
nggrowt hpolesorindustri
al
clust
ers,r
eferr
edtoint hePURA(Provi
sionofUr banAmeni t
iesinRuralAreas)context,
in
the05-06unionbudgetspeech.Thegr owthpolescancov erallthr
eeelement softhe
clust
erapproach-
industri
alcl
ust
ers,ar
tisancluster
sandagr o-basedcl
ust ers,
”TheNMCC
alsosuggest st hatt het imei sr ightf orexpl oringmechani smsofhowI ndi anMSMEs
coul dt ieupwi t hMSMEsi ndev el opi ngcount riesf ort echnol ogyaswel l ast rade.
PENALI TI ESFORDELAYEDPAYMENTSTOMSMEs: TheGov t.hasenact edt he
i
nt erestondel ay edPay ment sActf ort hebenef i
tofMSMEs.TheActpr escr ibest hatt he
cust omer sofMSMEsshoul dmaket hepay ment swi thin120day sofaccept i
ngt hegoods.
Del ay sbey ondt hiswoul dat t
racti nt er estat11/ 2t imest hepr i
mel endi ngr ateoft heSBI .
PRI MEMI NI STER’ SROZGARYOJNA( PMRY) :I twasl aunchedon2ndOct ober
1993, wi tht heobj ect iveofcr eat i
ngonemi ll
ionj obsi n5y ear sbygi v i
ngl oansf orthe
creat ionoft inyandmi croent er prise.
INDUSTRI ALCLUSTERDEVELOPMENT:Ani ndust rialclust ercanbedef inedasa
sect or i
al andgeogr aphi cal concent rat ionofent er prises, especi allyMi cr o,Smal land
Medi um Ent erpr ises( MSMEs) ,whi chhav ecommonoppor tunit i
esandf acesi mi lar
threat s.
ASSI STANCEFORMSMEEXPORTS: Fol lowi ngar et heassi stancet oMSMEexpor ts:
(a)MSMEsar ehel pedi npar ti
ci pat ingi nt radeexhi bitions.TheGov t.woul dmeett he
expenses
i
nt hi sr egar donspacer ent ,handl ingandcl ear ingchar ges, insur anceandshi pment
char ges
etc.
(b)MSMEsar egi vent ri
plewei ght agef orbei ngr ecogni zedasExpor tHouses, Trading
Houses,
StarTr adi ngHousesandSuperSt arTr adi ngHouses.
(c)Capi tal GoodsZer oDut ySchemei sext endedt oMSMERswi thoutanycondi t
ions.
(d)Mar ket i
ngDev elopmentAssi st ancei sgi vent oMSMEst of aci l
i
tatemar ketr esear ch,
publ icit
yet c.
OTHERSCHEMES: Impor tantschemesar ebr i
ef lydi scussedasbel ow.
(a)I ntegr at edI nf rast r
uct ur alDev elopmentScheme:
Undert hi sschemet heCent ral Gov t .woul dcont ri
but eRs5cr or ei nther atioof2: 3f orthe
dev elopmentofi ndust ri
al infrast ruct ur ei nr ur al andbackwar dsar eas.Theobj ectiveof
theschemei st opr omot et hel ocat ionofMSMEsi nr ural andbackwar dar easand
facilitatel inkagebet weenagr icul tur eandi ndust ry.
(b)Mar ket ingDev elopmentAssi st anceScheme:
MDAi sanewschemel aunchedi nAugust
2001.Thi sschemepr ov i
desf ol lowi ngf ivet ypesofassi st ance:
1)Assi st ancet oi ndi vidualsf orpar ticipat ingi nov erseast radef ai r
sandexhi biti
ons.
2)Assi st ancet oi ndi vidualst ogoonov erseasst udyt our sorasamemberofat rade
delegat i
ongoi ngabr oad.
3)Assi st ancef orpr oduct i
onofpubl i
ci tymat er ial forov erseaspubl icit
y .
4)Assi st ancet osmal l i
ndust ryassoci ati
ont oconductsect or -speci f
icmar ketst udies
abr oad, and
5)Assi st ancet oSSIAssoci ationst oi niti
at e/cont estant i
-dumpi ngcases.
(c)Tr adeRel at edEnt repr eneur shi pAssi stanceAndDev elopmentForWomen:
TREADi saschemef orgi vingt rade- r elatedassi st ancet owomenent repr eneur si nt he
form ofLoans, gr ants, trade- relat edt rainingandi nf ormat ion, counsel ingandext ensi on
ser vices.
(d)Pr efer ent i
al Gov t.Pur chases: Iti smadecompul sor yf orv ar iousgov t.depar tment s
andagenci est obuyt heirrequi rement sofanumberofi temsf r om t heconst it
uent soft he
MSMEsect or .

Fl
owChar
tforset
ti
ngupaSSI
1.Selecti
onofapr oject
2.Decidingont heConst itut
ion
3.ObtainSSIRegi strati
on
4.ObtainClearancef rom Departmentasappli
cabl
e
5.Arrangeforland/ shed
6.ArrangeforPl ant&Machi ner
y
7.ArrangeforInf r
astructure
8.PrepareProjectr eport
9.Apply&Obt ainFi nance
10.Proceedtoi mpl ement&Obt ai
nFinal
Clear
ances

STEP1:PRODUCT/ SERVICESELECTI
ON
a)Productorservi
ceselecti
on
b)Locati
onSelect
ion
c)Pr oj
ectFeasi
bil
it
yStudy
d)BusinessPlanPreparat
ion
e)Preparat
ionofaprojectprof
il
e

a.Pr oduct /Servicesel ect ion

ProjectI dentif
icat ioni sconcer nedwi thcol l
ect i
on, compi lat ionandanal ysisofeconomi c
dataf ort heev ent ual pur poseofl ocatingpossi bleoppor tuni ti
esf orinv estment&wi ththe
dev el
opmentofsuchoppor tuniti
es.Sour cesf orgener atingnov elprojecti deasar e
personal observ ationsoft hesur roundi ngenv ironment ,tradef airs/exhi bitions, technical&
professi onal l
it
er aturepubl i
shedi ntradeper i
odi calsandmagazi nesDev elopment
pl
ans/ schemesofGov ernmentmaypi npoi ntt owar dauni quei nvest mentoppor tunity,
bulletinsofr esear chI nst it
ut essuchasEr nst&Young, McKi nsey ,KPMG, ACNi elsencan
prov i
dev al
uabl einsi ght soncur rentst ateofv ar ioussect or s, demand- suppl ygapand
i
nv estmentoppor tunity ,i
fany .Cont actingor gani sationssuchasDi stri
ctI ndust r
yCent res,
Cent resf orEntrepr eneur shipDev el
opment ,Smal lI
ndust rySer v i
cesI nst it
ut e, EDI,
NIESBUD, KVIC, SIDBI , Nat i
onal Indust r
ial Dev elopmentCor porat i
onet c.andgat her i
ng
i
nfor mat ionint hef orm ofpr ojectprof i
les, feasi bili
ti
esst udi es,indust ryst udi es, area
dev el
opmentst udi eset c.canbesour ceofnewi dea.
CriteriaforSel ect ingaPar ticularProduct
Mar ketPot enti
al Degr eeofCompet i
tionI nv est mentSi zeLocat ionAv ailabilit
yofRaw
Mat erial,Technol ogy&Equi pmentAv ailabili
tyofI nfrastruct ural facili
tiessuchas
l
and/ shed, power , wat er,transpor tetc.Resour ce&Exper ienceoft heent repr eneur
Gov ernmentPol i
ci es&Pr ocedur esPackagi ng, Br anding, War ranties&Af terSal esSer vi
ce
b.Locat i
onsel ect ion
1.Gener alConsi der ations:
Locat ion(city/
town/ vi
llage) ,
pr oximitytonear estr ail
wayst at i
ons/ seapor t/airpor t
/ ,
av ailabi lit
yofessent i
al r
awmat er i
al sour ces, skilledl abour , l
aw&or dersi tuat i
oni nt he
area, lev elofi ndust r
ial dev elopmenti nthear ea, et c.
2.I ndust r
ial Inf rast ruct urePosi tion:
Land( av ailabi l
ity&pr ice), wat er&powersuppl y, effluentt reat ment&di sposal /drai nage
arrangement ,post al,t elegr am &t el ecommuni cat ionf acili
ties, banki ngf aci li
ties,
war ehousi ngf aci li
ty,pr of essi onal resour ceper sonsuchasl egal adv i
sor .Char tered
account ant s, management /indust rial consul t
ant set c.
3.Fi nanci al Incent ivesAv ailabl e:
Inv est mentsubsi dy( Cent ral/ Stat eGov ernment ),incomet axconcessi on, sal est ax
exempt ion/ int erestf reesal est axl oan, Oct roiexempt i
on, el ect r
icit ydut yexempt ion, local
taxexempt ionet c.4.Soci alInf rast ruct urePosi tion: Housi ng( av ailabi l
ity,qual i
ty,pr ice,
publ ichousi ngf aci li
ties) ,educat ion( primar y,secondar yanduni v ersi tyeducat i
onf aci li
ty)
andheal th(di spensar y ,hospi tal s&speci aliti
es)5.Si te-Speci fi
cConsi der ation: accesst o
nat ional highwayorot herr oadspr ov idedbyt hest at e, soil t
y pe, di rect i
onoft owngr owt h
wi thr ef erencet ot hesi te, ov erheadt elephoneorpowerl inesorunder ground
wat er/ drainage/ gasl inepassi ngt hr ought hesi te, v ant ageorot her wi se, front age
appr oachet c.
c.Pr oj ectf easi bi li
tyst udy
1.MARKETANALYSI S
2.TECHNI CALANALYSI S
3.FI NANCI ALANALYSI S
4.ECONOMI CANALYSI S
5.ECOLOGI CALANALYSI S
1MARKETANALYSI S
Consumpt iont rendi nt hepastandpr esentconsumpt ionl ev el Pastandpr esentsuppl y
posi ti
onPr oduct ionpossi bi l
itiesandconst rai
nt sI mpor tsandexpor tsSt ruct ureof
compet iti
onCostst ruct ureEl ast icityofdemandConsumerbehav i
our ,i
nt ent ions,
mot ivat ions, at titudes, pref erencesandr equi rement s.Di stribut ionchannel s&mar ket ing
pol icies
2.TECHNI CALANALYSI S
Techni cal anal y sishast heav ailabi lityofr awmat er i
als, poweradot heri nput sbeen
est abl ished?I st hesel ect edscal eofoper at i
onopt imal ?I st hepr oduct i
onpr ocesschosen
sui tabl e?Ar et heequi pment&machi nechosenappr opr iate?Haspr ov isionbeenmadef or
treat mentofef fluent s?I st hepr oposedl ay outoft hesi te, bui l
dingandpl antsound?Hav e
wor kschedul esbeendr awnupr eal ist i
cally?Ist het echnol ogypr oposedt obeempl oy ed
appr opr i
atef rom t hesoci al poi ntofv i
ew?
3.FI NANCI ALANALYSI S
Financi alAnal ysi sseekst oascer tainwhet herthepr oposedpr oj ectwi llbef inanci ally
viabl ei nt hesenseofbei ngabl et omeett hebur denofser v i
cingt hedebtandwhet hert he
proposedpr oj ectwi lly i
eldasat isfact oryr ateofr et urn.Fewaspect sr equi ret obel ooked
i
nt osuchas:
Inv est mentout layMeansoff inanci ngPr oj ectedpr of i
tabi li
ty
Br eak- ev enpoi nt
Cashf l
owsoft hepr oj ect
Pr oject edf inanci alposi ti
on
Lev el ofr i
skCal cul ationofkeyr at iossuchasROI ,Liqui dity&Sol vencyRat ios
4.ECONOMI CANALYSI S
Thequest i
onssoughtt obeanswer edi nsoci al cost -
benef itanal ysi sar easf oll
ows: What
aret hedi recteconomi cbenef itsandcost soft hepr ojectmeasur ei nt er msofshadow
pricesandnotmar ketpr i
ces?Whatwoul dbet hei mpactoft hepr ojectondi stri
but ionof
thei ncome?Whatwoul dbet hei mpactoft hepr ojectont hel ev el ofsav ingsand
i
nv est ment ?Whatwoul dbet hecont ri
but ionoft hepr oj ectt owar dst hef ulfill
mentof
cer taincr iter iasuchassel f-suf ficiency ,empl oy mentandsoci al or der ?
5.ECOLOGI CALANALYSI S
Ecol ogi cal anal y sisEcol ogi cal anal y sisshoul dbedonepar ticular l
yf ormaj orpr oject s
whi chhav esignifi
cantecol ogi cal i
mpl icat i
onssuchaspowerpl ants,i
rri
gat i
onschemes.
Manuf acturingofbul kdr ugs, chemi cals, l
eatherpr ocessi ngetc.Thekeyquest i
onraised
i
necol ogical analysisisasf ollows: Whati st hel i
kelydamagecausedbyt hepr oj
ecttothe
env i
ronment ?Whati st hecostoft her estorat i
onmeasur er equiredtoensur ethatthe
damaget ot heenv ir
onmenti scont ainedwi thinaccept abl el i
mi t
s?Isthepr ojectcausing
wat er/airpol l
uti
onordi schar geofhar mf ulchemi cals?
d.Busi nesspl anpr epar ation
WHATI SI NCLUDEDI NABUSI NESSPLAN
e.Pr ojectpr ofi
leApr ojectpr ofilegi vesabi rd-viewoft hepr oposedpr oject.Thismaybe
usedt oobt ainthePr ov isional Regi strationCer tif
icate(PRC)f rom theDistrictI
ndustries
Cent reorappl yi
ngf orland/ shedt oI ndust r
ial AreaDev elopmentBoar d,StateSmal l
Indust ri
esDev el
opmentCor por ation( SSI DC)et c.Impor tantinformational headstobe
cov eredi napr ojectpr ofilearepr omot er’sbackgr ound, pr oductdescripti
on, market&
mar ket i
ng, plant&machi ner y
, processdet ail
s, costoft hepr oj
ect&pr ofit
abi l
it
y,meansof
financeet c.

STEP2.Deci deont heconst i

tution
Solepr opr i
etorshipPar tnershipCor por ati
on/li
mitedcompanyCooper at
iveFranchisi
ng
SolePr opr ietor
shi p:Asol epropr iet
or shipisownedbyonl yoneperson.Thi
si sthemost
commonf orm ofbusi nessowner shi p.
Partnershi p:Abusi nessownedbyt woormor epeople.Thepart
nersshareowner shipand
control oft hebusiness.
Company :Acompanyi sabusi nesswhi chisconsideredaseparat
eentit
yfrom owner ;
evenhav i
ngt helegal r
ightsofaper son.
Franchising:Fr anchi singi sabusi nessar rangementinwhichtheownerofat rademar k,
tr
adename, orcopyr ighthasl icensedot herstouseitinsel
li
nggoodsorser vi
ces.Itcan
besol epr opr i
etorshi p,partnershiporcompanyf orm.

STEP3.Obt ai ningr egi st rat i

on:
RegistrationSmal l
-scal eandanci llaryuni t
sshoul dseekr egi strat i
onwi tht heDi rect orof
I
ndust riesoft heconcer nedSt ateGov ernment .Ent repreneurst ar t
ingasmal lscal e
i
ndust ryhav et oi nitiallyobt ainaPr ovisional Regi strationCer t
ifi
cat e. Oncet heuni tgoes
i
ntopr oduct ion, t
hePRChast obeconv ertedi ntoaPer manentRegi str
at ionCer tifi
cat e.
Theini t
ial val i
dit yoft hePRCi s2y earsandi tcanber enewedsubsequent l
y ,ifneeded.
PRCi snor mal lyv al i
df or5y ear sandper manentr egi strat
ioni sgi veni nper pet ui
ty .
Benef i
tsofr egi strat ion
Ther egistr ationschemehasnost atutor ybasi s.Uni tswoul dnor mal lygetr egi st
er edt o
availsomebenef i
ts, incent ivesorsuppor tgi venei therbyt heCent ralorSt ateGov t.The
regi
meofi ncent i
v esof fer edbyt heCent regener allycont ainst hef ollowi ng:  -Credi t
prescription( Prior itysect orl endi ng) ,different i
alratesofi nterestet c.  -Exci seExempt ion
Scheme   -Exempt ionunderDi rectTaxLaws.   -Stat utorysuppor tsuchasr eser vat i
on
andt heI nter estonDel ay edPay ment sAct .St ates/UTshav et hei rownpackageof
faci
li
tiesandi ncent ivesf orsmal l scale.Theyr elatet odev elopmentofi ndust ri
al est at
es,
taxsubsi di es, powert ariffsubsi dies, capi t
al investmentsubsi di esandot hersuppor t
Provisionalr egi st rationcer t
ificat e( prc)
Thisisgi venf ort hepr e- oper ativeper iodandenabl est heuni tst oobt aint het erml oans
andwor kingcapi t al from f inanci al institutions/ banksunderpr i
or itysect orl endi ng.Obt ain
faci
li
tiesf oraccommodat ion, land, otherappr ovalset c.Obt ainv ariousnecessar yNOCs
andcl earancesf rom r egul ator ybodi essuchasPol luti
onCont r
ol Boar d, Labour
Regulat i
onset c.
REGISTRATI ONFor mal iti
esf orpr c
Prescribedcour tf eesst ampCopyoft hepr ojectpr ofil
ePar t
ner shi pdeed/ MOA/ AOA
Affi
dav itaspert hef or matonappr opr iatest amppaper
Thememor andum ofassoci at ionandar t
iclesofassoci ati
onar et het wochar ter
document s, forset tingupoft hecompanyandi tsoper ati
onst her eon.‘ Memor andum of
Associ ation‘ abbr evi
at edasMOA, i
st her ootdocumentoft hecompany ,whi chcont ai
ns
allt
hebasi cdet ail
saboutt hecompany .Ont heot herhand, ‘Ar ticl
esof
Associ ation‘ shor tl
yknownasAOA, i
sadocumentcont aini
ngal lther ulesandr egulati
ons
designedbyt hecompany .
PERMANENTREGI STRATI ONCERTI FICATE( PMT)
APMTenabl est heuni ttogett hefollowi ngbenef i
t s: i
ncome- taxandsal es-taxexempt ion
Incenti
v esandconcessi onsi npowert ariffsToappl yforscar cer awmat erialsandf or
i
mpor t
edr awmat eri
als.Pr i
ceandpur chasepr ef
er encef orgoodspr oducedToobt ain
centralexci sedut yconcessi ons
Procedur ef orper manentr egistrat
ioncer t i
fi
cate
Oncet hepr oduct i
oncommences, t
heor gani sati
oncanpr oceedt oappl yforPer manent
RegistrationCer tif
icate( PRC) .
Iti
sal ifet i
mer egistrat i
ongi venaf terphy sical inspect i
on
oftheent erpr i
seandscr utinyofcer taindocument s.Someoft hef or mal i
ti
esr equiredto
becompl et edf orseeki ngper manentr egi strat
ionar e:-Clearancef rom t hemuni ci
pal
corporat i
onSt atepol lut i
oncont r
olboar dcl ear
anceSanct i
onf r om theel ect ri
cityboar d
Owner ship/ tenancyr i
ght soft hepremi seswher euni tislocatedCopyofpar t
ner ship
deed/ Memor andum or articlesofassoci ationincaseofapr i
v at eli
mi tedcompanySal e
bil
lofpr oductmanuf act ureSal ebil
l ofeachendpr oductPur chasebi llofeachr aw
mat eri
al Pur chasebi l
l ofmachi neryinstal ledAnaf fidav i
tgivingst atusoft heuni t
,
machi neryi nstal l
ed,powerr equirement , etc

STEP4.Cl earancefrom speci

fi
cdepar tments
Speci
ficClearancesusuall
ydependingont hetypeofunits:Agr
icult
ural
landconver
sion
Urbanlandceili
ngclearanceBui
ldingplanapprovalFact
or i
esAct/tr
adeli
cencePoll
uti
on
contr
olboardcl ear
ancesSalestax/centr
alexci
seregist
rati
onDr ugs&cosmeticsli
cence
Foodadulterati
onactli
cence

STEP5.ARRANGEMENTOFLAND/ SHED
Foranyindust r
ialproj
ect,asuit
ableindustri
al sit
eorar eadyindustrialshedisrequired.
Thepr omotersoft heunitcouldconsidertakingani ndustr
ialshedandconst ructi
ngt he
shedaspert her equir
ement .Usi
ngar eadyindustrialshedcoul dbeconsi deredon
l
ease/rent
al basis.Inordertoapplyforindustrialshed, f
ewappl icati
onf ormalit
ieshav eto
becompl i
edi ncludi
ngcopyofPr ovisionalRegi st
rationCertifi
cate,detail
edprojectreport,
cert
if
iedcopiesofeducat i
onalquali
fi
cat i
ons,appl i
cableear nestmoneydeposi t.

STEP6.ARRANGEMENTOFPLANT&MACHI NERY
Theent repreneurcansel ectandpur chaset her equisiteplant&machi ner yf rom
recogni sedandappr ov edmanuf act urers.BanksandSFCsmai nt ainal istofappr oved
machi ner ysuppl i
esDi rectpur chaseThepl ant&machi nerycanbet akenonhi repur chase
from NSI C.Aspert heagr eement ,oncet heleasedi nstalmenti spai d,theasset swi l
l
becomet hepr oper t
yoft hei ndust rialunit.Anappl i
cat i
onint hepr escr i
bedf ormathast o
besubmi tt
edt ot heDi rectorofI ndust ri
esoft heSt ateunderwhosej urisdi ctiont he
applicantoper ates.Hi rePur chase
ARRANGEMENTOFRAW MATERI AL
RawMat erialpr ocur ementandpl anni ngar ecr it
icaltosuccess, ofast art-upuni t.Ther aw
mat eri
al srequi redmaybe: -Domest icall
yav ailable(wi t
hint hecount ry).Impor tedf rom
abroad: -Forimpor ti
ngt her awmat er i
alstheGov ernmentr ulesandr egul at i
onshav et obe
foll
owed.Thei mpor t
sar er egulat edbyt he For eignTr ade( Dev elopmentandRegul ation)
Act,TheActpr ov i
desf ortheappoi ntmentbyt heCent ralGov ernment ,ofa  Director
Gener al ofFor eignTr ade  fort hepur poseoft heAct .TheDGFTshal ladv iseCent ral
Gov ernmenti nf or mul atingexpor tandi mpor tpol i
cyandi mpl ement ingt hepol icy .
What ev erbet hesour ceofr awmat er i
alsitmustbeboughtf rom r eput eddeal ersand
agenci esonl y.Bef oreor der ing, compar ethepr i
cesandgetquot at i
onf rom atl east3- 4
placesandal socheckwhet herpr icei sinclusiv eorexcl usiveoft ranspor tationcost s.
Whi l
er eceiv i
ngt hedel ivery ,checkt hequal it
yandquant it
yoft hemat erials
Processselect
ionBeforeselecti
nganypr ocesstechnology,fol
l
owingconsiderati
onsare
tobet akencar
eof:Thel evelofskil
l
edwor kersorcompl exmachinesrequir
edbyt he
process.Thequanti
tyofwat erand/orpowerr equi
red.Ifanyprocessorproductpatent
i
sneededi nordertoutil
i
zet heselectedprocesstechnology.Anyspeci
alPollut
ionor
Envir
onment al
regul
ationistobef oll
owed.Theappr opri
atenessofthetechnologytothe
I
ndianenv i
ronmentandcondi ti
ons.

STEP7.ARRANGEMENTFORI NFRASTRUCTURE
Themai ninfrastr uctural facili
ti
esr equi r
edf oraSSIuni tar el and/ shed, powerconnect i
on,
wat ersuppl yandt elephonef acility.Si ngleWi ndowAgenci esar esetupatdi str
ictlev elfor
thebenef i
tofsmal l
-scalei ndust ri
es.SWApr ov i
desv ariousser v icesi ncl udingal l
ot ment
ofland/ i
ndust r
ial sheds/ powerconnect ion, sanct ionoft erml oansandwor kingcapi tal
,
disbur sementofv ariousi ncentivesandconcessi onset c.Theent repr eneurcanav ail of
sever alconcessi onsandi ncent i
v esofSt ateGov er nmentav ailabl ef orSSIsuchas
subsi disedwat er/ powert arif
f,transpor tsubsi dy,incent i
v ef orpol lutioncont roletc.
Get ti
ngut ili
tyconnect ions( water&power )
WATERSUPPLY: Findoutt hewat errequi rementoft hei ndust ry .Checkoutwhati st he
bestpossi blesour ceoft her equi redwat ersuppl yi .e.river, canal ,tubewel landhowf aris
i
tf r
om y ourland.Checkt hequal ityofwat er(PH, har dness)anddoesi tmeety ouspeci fi
c
requi r
ement s.Rat e/wat erchar gesappl i
cabl easwel last hecommonst oragef acility.
Findoutwhoi st heoper atingaut hority( Publ i
cWor ksDepar tment , Est ate-
Cor porat i
on,
Muni cipality)oft hear ea.Wat erconnect ioni sobt ai nedbyappl y ingi nadv ancei nf or mal
forms
Get ti
ngut ili
tyconnect ions( water&power )
POWERSUPPLY: Findoutt hepowersuppl yrequi rementoft hei ndust ry.Locat ethe
near estsubst at i
onf rom wher ey ouwi l
lgetpowersuppl y.Al sof indoutt hepowert ar i
ff
rateandt hedur ationf orwhi chrequi redsuppl ywi ll beav ailable.Af or mal appl i
cation
needst obemadei naspeci f
icfor mt ot heconcer ned  Stat eEl ect r
icityBoar ds.An
electricalinspect ori sdeput edf orev aluat i
onofappl i
cat i
ont of act orysi te,afterwhi cht he
l
oadi ssanct ioned.I nar easofpowershor tage, i
ti sadv isabl et oaugmentt hepower
suppl ywi thacapt iv
egener ati
ngset .Af terobt ai
ningt hepowerf easi bi li
tyandsanct ion
certifi
cate, t
hepowersuppl ymaybegi v
ent ot heindust ry .

STEP8.PREPAREPROJECTREPORT
Gener alPointst obekepti nmi ndwhi lepr epar i
ngaPr ojectRepor t:Expect eduseoft he
projectreportEl aboratedet ail
sbutr etai ningt heconf identialdat aPr operv alidationoft he
dataandi nformat i
onbasedonr eli
abl esour cesEf fectivepr esent ationbyuseofchar t
s,
graphsandpi ctor i
alformsCostmi nimi sat i
onandt imel i
nesPr operest imat i
onoft he
requirementofnumberofcopi es.
CONTENTSOFAPROJECTREPORT
1.EXECUTI VESUMMARY: i
ntroduct ion, financi alperformance, balancesheetanal ysis,
projectprofit
abi l
ity&anal ysis,SWOTanal ysi s
2.COMPANYDETAI LS:history,manuf act ur ingfacil
iti
es, promot ers,shar ehol dingpat t
ern,
boar dofdirector s,keyexecut ives, maj orpr oducts/consumer s, det ailsofdi visionsand
groupuni ts
3.OPERATI ONALDETAI LS: capaci t
y&ut il
ization,profit&lossaccount ,terml oans&
advances, mar ket i
ng&di stributionnet wor k, mar keti
ngst rategy ,expor tsales
4.PROJECTDETAI LS:Proposedpr oject ,order s&enqui ri
es, l
ocat ion, manuf acturing
process, t
echni cal f
easibil
ity/know- how, manpower ,power /wat ersuppl y,auxi l
iary
services
5.PROJECTCOST: l
and,building, plant&machi nery,preoper ativeexpenses, mar gin
moneyf orhir
epur chase&wor kingcapi tal.
6.MEANSOFFI NANCE
7.PROJECTSTATUS: i
mpl ement ati
onschedul e,PERT&CPM anal y sis,cur r
entst at usof
workf low
8.PROFITABILITY&RI SKANALSYI S:Fi
nancialofthepr oject ,
anal y
sisofbr eak-ev enpoint
,
ROI,paybackper i
odandi nter
nalrat
eofreturn.
9.COMPANYv is-à-v
isRELATEDI NDUSTRY: Generalanal ysis,compet ingindustries,
knowledgeaboutexi st
ingmonopol i
esandexi sti
ngcartel s.
10.EMPLOYMENTGENERATI ON
11.CONCLUSI ON
12.ANNEXURE: Promot er
’sbio-
dataOrganisati
onchar tDet ailsofgr oupuni t
sSt at ut
ory
sancti
ons/approvalsArrangementofland&bui ldi
ngDet ailsofor ders&enqui ri
esPr ocess
chartFi
nancialforproj
ectandcompanyandi t
sanalysisAnyot herrelevantdetails

STEP9.APPLY&OBTAI NFI NANCE

Theent repreneurhasf ewkeydeci sionstobemade: Sourcesoffinance:shar ecapit
al,
i
nternalaccr uals,deposi
ts–own/ publi
c,debentures,short-t
erm borrowings, l
ongterm
l
oans, bridgeloansandwor ki
ngcapi tall
oans.Smal lscaleunitscanobt ainf i
nancefor
thei
rproj ectsundert wocategori
es: Term LoanWor kingCapi tal
Loan3.Fi nancial
assist
ancei nIndiaforSSIunit
sisav ail
ablefrom av ari
etyofinsti
tuti
onsi ncludi
ngSmal l
I
ndustriesDev elopmentBankofI ndia,SFC,NSIC,SIDC, DI
C.ExportImpor tBankofI ndi
a
andExpor tCreditandGuaranteeCor porati
onarecent r
alagencieswhi chpr ovi
decredit
forexpor t/i
mpor tandEXIM guarantees.

STEP10.IMPLEMENTTHEPROJECT&OBTAI NFI NALCLEARANCE

Constr
uctshedOrderf
ormachi
ner
yRecr
uitpersonnelArr
angef
orr
awmat
eri
als
Marketi
ngErect
ion&commissi
oni
ngObt
ainFinalClear
ance

Environment alpol lutionandRegul at

or yandnonr egulatoryclearancesf ornewv enture
promot ioninSMEsect or:
Env i
r onment alclear ancesf orSMEs
Whati senv ir
onment alpol l
ut i
on?
Environmentmaybeconsi derasoursur roundingswhi chincludesev eryt
hingar oundus,
i
.e.thenon- l
iving(abi ot i
c)andl i
ving(bioti
c)env ir
onment .
Theabi oti
cenv i
ronmentconsi st sofair,waterandsoi l
,whil
et hebioti
cenv ir
onment
i
ncludesal lthel i
vingor ganisms( pl
ants,animal s,microorganisms)thatwer egular
ly
comei ncont act .
Environment–Basi cConcept s:
Theenv ironmenti scomposedoff ourbasi ccomponent s:
i
.At mospher e
i
i.Hy drospher e
i
ii
.Lithospher e
i
v.Biospher e.
Therei sacont inuousi nteractionamongt hevariouscomponent soft heenvironment( Fi
g.
54.1).Andul ti
mat el y
, itisthebi ospherethatget sinfluencedbyt heot hercomponent s.

Thefourcomponentsoftheenv
ironmentarebr i
efl
ydescri
bed.
Atmosphere:
Theatmosphereconsi
stsofablanketofgases,suspendedli
quidsandsoli
dst
hat
envel
opetheeart
h.Theatmosphereisbasical
lyderi
vedfrom t
heearthi
tsel
fbyvar
ious
chemi cal andbi ochemi cal r
eact ions.Themaj orcomponent soft heat mospher ei ncl
ude
thegasesni trogen, oxy gen, argon, car bondi oxi de, wat erv apourandsuspended
par ticul ates( dust , soot ).
Thecomposi t i
onoft heat mospher edependsont i
meandspace, andi shi ghl yv ariable.A
l
iterofai rwei ght sar ound1. 3g.Theat mospher eisv er ti
cal lydi videdi nt of ourIay es—
tropospher e, strat ospher e, mesospher e, andt her mospher e.Thi sdivisioni smai nlybased
ont hei ncr easei nt het emper atur e.
Hy dr ospher e:
Thehy dr ospher epr imar i
lyconsi stsoft hewat eront heear th’ssur face.Thus, t
he
hy drospher ei ncl udesoceans, seas, river s, str eams, lakes, reser voirsandpol ari cecaps.
Wat eri st hemostabundantsubst anceont heear t h’ssur face, whi chmaybepr esentas
i
ce, li
qui dandv apour .Appr oximat ely ,71%oft heear t h’ssur facei scov eredwi t
hwat er ,
mai nl yi nt hef or m ofoceans.
Itisest imat edt hatabout97%oft het otal ear th’ swat erisi nt heoceansandi nlandseas
wi thhi ghsal tcont ent .Andt hiswat eri snotusef ul forhumanconsumpt ion.Ar ound2%of
thewat eri spr esenti nt hegl aci ersandi cecaps.
Theact ual wat erav ai l
ablef orhumanconsumpt i
oni sar ound1%oft het otal ear th’swat er.
Thi si ncl udest hegr oundwat er, wat erf r
om l akesandr i
ver sandsoi l moi stur e.Humans
useswat eri nt hehomes, indust ries, agr i
cul tur eandr ecreat ion.Ther ei sacont inuous
decr easei nt heconsumabl egl obal wat er .Ther efor e, ther ei saneedf orpr eci oususeof
wat er ,andi t sconser vat i
on.
Lithospher e:
Theout erboundar yl ayeroft hesol idear thonwhi cht hecont inent sandt heoceanbasi ns
restconst itut est hel i
thospher e.I nabr oadsense, lithospher ei ncludest hel andmassand
theoceanf loor .Howev er,inagener al usage, thet er ml ithospher eref er stot hel and
sur facewhi chi sappr oximat ely3/ 10t hoft het otal sur faceoft heear th.
From t hebi ol ogi cal pointofv iew, thesoi list hemosti mpor t
antpar toft hel ithospher e
becausei tcont ainst heor ganicmat terandsuppor tsgr owt hofpl ant sand
mi cr oor gani sms.Li thospher ei si nv olv edi nt hepr oduct ionoff oodf orhumansand
ani mal s,besi dest hedecomposi tionofor gani cwast es.
Biospher e:
Thebi ospher ecompr i
sesofal lthezonesonear thi nwhi chl ifei spr esent .Bi ospher eis
spr eadov ert hel owerpar toft heat mospher e, thet opoft hel ithospher eandt heent ir
e
hy drospher e.I not herwor ds, thebr oadspect rum ofbi or esour cesoft heear th,suppor t
ing
l
ifeconst itut est hebi ospher e.
Itisest imat edt hatt hebi ospher econt ainsmor ethan3. 5l akhspeci esofpl ant s( i
ncluding
algae, fungi ,mossesandhi gherpl ant s)andmor et han110l akhspeci esofani mal s
(unicel lul ar ,mul ticel lularandhi gherani mal s) .Thebi ospher epr ov i
dest heessent ial
requi si tes( wat er, l
ight ,heat ,air
, food, spaceet c.)f ort heexi stenceofl ife.
Thebi ospher ei sv er yv ast ,andf ort hesakeofunder standi ng, itisdiv i
dedi ntosmal l
er
uni t
snamel yecosy stems.Anecosy stem maybeconsi der edast hesmal l
estuni tof
biospher et hatpossessest her equi sitechar act erist i
cst osust ainl i
fee. g. ,ponds, seas,
deser ts, ci ties.
Env ironment alPol l
ut i
on—Sour cesandNat ur e:
Manl ivesi nt wowor l
ds—anat ur al wor ldoft henat iveenv i
r onmentandabui lt-
wor l
d
creat edbyhi msel f
.Thebui lt
-wor l
d, anout comeoft headv ancesmadei nt hesci enceand
technol ogy ,isassoci atedwi thenv i
ronment al pol l
ut ion.Env ironment al pollut ioni sa
global phenomenon, andt herefor eamat terofconcer nforev er y
one.
Pol l
ut ionbr oadl yr ef er stot hepr esenceofundesi rabl esubst ancesi nt heenv ir
onment
whi char ehar mf ul tomanandot heror gani sms.Thepr esenceofunwant edsubst ancesi n
theenv ironmentmayoccurduet ohumanact ivit
ydi schar gingby product s, awi de
spect rum ofwast epr oduct sandsev eral har mf ulsecondar ypr oduct s
Sour cesofPol lution:
Asal readyst at ed, env ironment al pol lut i
oni smost lyduet odi rectori ndi recthuman
act i
v iti
es, ar isingoutoft hebui l
t -
wor ldcr eat edbyhi m.
Therear esi xmaj orsour cesofenvir
onment alpollut
ion:
1.Indust r
ialsour ces
2.Agr iculturalsour ces
3.Biogeni csour ces
4.Ant hr opogeni csour ces
5.Unnat uralsour ces
6.Extra- terr
estr i
al sour ces.
Ther elat i
veimpor t
anceofeachoneoft hesesour cesdependsonthesite-
speci
fi
c
sit
uation.Fori nst ancei nci t
ies,
anthr
opogeni csourcesarethemajorcontr
ibut
orswhi
l
ein
rur
al ar eas,agr i
cul tural sour
cessigni
ficantl
yaddt opollut
ion.
TypesofPol lution:
Theenv ir
onment al poll
utionmaybecat egor
izedintosixmajorgr
oups:
1.Air/at mospher epol l
ut i
on
2.Wat erpol l
ution
3.Land/ soilpollution
4.Noi sepol lution
5.Ther mal pollution
6.Radi oact i
v epol lut i
on.

Kinds:
Airpolluti
on: Str
ongestai rpoll
utantsareNO2, SO2,CO,O3,ai
rbornepart
icles,
and
volati
leor gani ccompounds
Wat erpollution: thestrongestareinsecti
cides,pol
l
utansf
rom l
iv
est ockoperati
on,
vocs,
foodpr ocessi ngwast eandchemi calwastes.
Solipollution: st
rongestar ehydrocarbons,solv
entsandheavymetals.
Fossi lfuels..aremostcr i
ti
cal…
Regul atoryl aws:
Acts:env ironment alprotecti
onact1986
Wat er(pr ev ention&cont r
olofpol l
uti
on)act1981asamendedi n1978- 88
Theai r(Pr event i
on&cont rolofpoll
uti
on)act1981, asamendedi n1987

Fiscalbenef it
st ounitsf orenv ironment alprot ecti
on:
Depr eci ational lowances@100%f ori nstalli
ngpol l
utioncont roldev ices
Cust om dut yatr educedr atesof35%+5%auxi li
arychar gesleviedoni mpor t
ed
equi pmentandspar esf orpol l
utioncont rol.
Cust om dut yatr educedr atesof25%+f ullexempt ionf r
om auxi liarychar gesf orkit
requi redf orconv ersionofpet roldr i
venv ehi
clest ocompr essednat ur al gasdriven
vehicl es.
Excisedut yatt her educedr ateof5%onmanuf acturedgoodst hatar eusedf orpollution
cont rol.
Excisedut yexempt i
onf orbr i
cksandbl ocksmanuf act uredf r
om f lyashandphosphor us
–gy psum
Exempt i
onundersect ion35CCBoft hei ncomet axacti sgi vent oassesswhoi ncur
expendi turebywayofpay ment sonanysum t owar dsassoci at
ionori nst i
tuti
onswhi ch
carryoutpr ogr ammesf orconser vati
onofnat uralresour ces.
Financi al assist ancet owar dscapi tal i
nv estmentupt o25%orr s50l akhs, whichev eris
l
ess, isgiv enassubsi dyt oindust r
ialistsset t
ingupcommonef fl
uentt reatmentf acil
it
ies.
Incent ivesi nt ermsofr ebat eoncesspay bleundert hewat er(pr ev ent ionandcont r
ol of
pollut i
on)cessamendmentact1991.
Prov isionofl oanatr educedr ateofi nterestbyf i
nanci alinstit
utionsf orinstal
li
ngpol lution
cont rol dev i
ces.
FundedbyUSAI D( UnitedSt atesagencyofi ndust r
ialdev elopment )t heI CICI(i
ndust r
ial
credi tandi nvest mentcor porationofI ndia)hasa25mi l
l
ionTEST( tr adei nenv i
ronment
servicesandt echnol ogies)schemewhi chcar r i
esat12. 5%wi thnoexchanger iskfor
dollarassi stance.
I
ndust
ri
alpol
l
uti
oncont
rolpr
oject
sf undedbythewor
ldbankonconcessi
onal
ter
ms,
r
ecei
vedbyMOEF(mini
str
yofexternalaff
air
s)

Envi
ronmentalrestr
ict
ionsf
orSSIsect
ors
Env
ironmentprotecti
onact1986

Env
ironment alcl
ear
ancepr
ocess
Screening
Scoping
evaluati
on

IntheConst itut i
onofI ndi ai tiscl earlyst atedt hati tist hedut yoft hest atet o‘prot ectand
i
mpr ov et heenv i
ronmentandt osaf eguar dt hef orest sandwi ldlifeoft hecount r
y ’
.It
i
mposesadut yonev er yci tizen‘ topr otectandi mpr ov et henat ural env ironmenti ncluding
forest s, l
akes, r i
v er s, andwi ldlife’ .Ref er encet ot heenv ironmenthasal sobeenmadei n
theDi rect ivePr i
nci pl esofSt at ePol i
cyaswel l ast heFundament al Ri ght s.The
Depar t mentofEnv ironmentwasest abl ishedi nI ndi ain1980t oensur eaheal thy
env i
ronmentf ort hecount r y.Thi slat erbecamet heMi ni stryofEnv ironmentandFor est s
i
n1985.
Theconst it
ut i
onal pr ov isi onsar ebackedbyanumberofl aws–act s, rules, and
notifi
cat i
ons.TheEPA( Env ironmentPr ot ect i
onAct )
, 1986camei nt of or cesoonaf t
ert he
Bhopal GasTr agedyandi sconsi der edanumbr ellalegi slationasi tf i
llsmanygapsi nt he
existingl aws.Ther eaf teral ar genumberofl awscamei nt oexi stenceast hepr oblems
beganar ising, forexampl e, Handl ingandManagementofHazar dousWast eRul esi n1989.
Followi ngi sal istoft heenv ir
onment al legi slationst hathav ecomei nt oef fect:
Env i
ronment alRegul ations
Env i
ronment alPr ot ect ion
Thef ol lowi ngi sabr i
efdescr ipt i
onoft hel awsandr egul at i
onsr elat ingt oenv ironment al
protect ioni nIndi a.
a.Const itut ionalSt at us
Article48Aoft heDi r
ect i
v ePr i
nci plesofSt atePol i
cypr ovidesf ort heSt ate's
commi t ment .Topr otect ingt heenv ironmentandAr t
icle51A( g)st atest hatt o
prot ectandi mpr ov et henat ur al env ironmentshal l bet hef undament aldut yoft he
cit
izensofI ndi a.
b.Regul at oryEnv ironmentPr otect ionLaws
Inobser v
at ionoft heDi rect ivePr incipl es, theUni onofI ndi ahasenact edt hefol l
owi ng
maj orl egi slations:
TheEnv ironment( Pr ot ect ion)Act ,1986, whi chi st heumbr ellaLegi slat
ion
TheWat er( Pr ev ent i
on&Cont rol ofPol lution)Act ,1981, asamendedi n1978and
1988
TheAi r( Pr ev ent ion&Cont rol ofPol lution)Act ,1981, asamendedi n1987.
Theabov eAct shav ebeensubst ant iall
yamendedi nt her ecentpastandsomeoft he
mostsi gni f
icantaspect sofamendment sar e:
Aconsentor deri snowv alidf or15y ear sort il
l sucht i
met her ei ssomesi gnificant
changei nt hepr ocess, whi chev eri sear li
er ;
Aconsentor dercannotbepr ov idedpr ovisional lyandwi l
l beobt ainableonl ywhen
allthepol lut ionpr ev ent ionr equi rement sar eadopt edi nt o;
Act ionundert heset woAct sar et obet akenbyt her espect iveSt atePol lution
Cont rol Boar ds.
TheFor estConser v ationAct ,1980
TheWi ldli
f ePr eser vat ionAct , 1982; ext endedt ocov erbi ospher er esour cesandt he
Hazar dousWast es( Management&Handl ing)Rul es, 1989.
Manuf act ur e, Stor ageandI mpor tofHazar dousChemi cal Rul es, 1989
Manuf act ur e, Use, Impor t,Expor tandSt or ageorHazar dousMi croor gani smsand
Genet ical lyEngi neer edOr gani sm orCel lRul es, 1989, tor egul atet hest or age,use, tr
ade,
transpor tanddi sposal ofhazar douswast es.
ThePubl i
cLi abi li
tyI nsur anceAct ,1991
TheMot orVehi clesAct ,1939, amendedi n1988, and
TheEnv ir
onmentTr ibunal Bill
, 1992.
c.Pr omot ionalPol i
cyFr amewor k
TheNat ional For estPol icy ,1988
TheNat ional Conser vat ionSt rat egyandPol icySt atementonEnv ironment&Dev elopment ,
1992.
Thepol i
cyst at ementf orabat ementofpol lution, 1992
Theabov epol icyst at ement scompl ementt heNat ional Wat erPol icyandFact oriesAct ,
1948, besi desot herr elat edl egi slationhav ingabear i
ngonr esour cesandeconomi c
act i
v it
ies
Thenat i
onal Housi ngPol icy , 1988, theNat ional Wat erPol icy ,1987andt heNat i
onal Land
UsePol icy ,1988, recogni set hei mpor tanceofmai nt ainingecol ogi cal bal ance.
D.Or gani sat ional St ruct ur esoft heRegul at ingBodi esf orEnv i
ronmentManagement
TheMi nist ryofEnv ironmentandFor est s,cr eat edi n1986, ist henodal r egul atingagency .
TheMi nist ryhasf ourdi v i
si ons:
a.Env ironment : TheCent ral Pollut ionCont rol Boar d( CPCB)f unct ionsunderi tand
thisdepar tmenti sr esponsi blef orexer ciseofpr omot ional andr egul ator y
funct ionsundert heWat er ,AirandEnv ir
onmentPr ot ect i
onAct s.
b.For est sandWi l
dl i
f e: Wi ldl i
fepr eser vat ionof ficesr esponsi blef ori mpl ement i
ngt he
Wi ldl i
fePr ot ect ionAct ,1972andt heRegi onal Of f
icesoft heMOEFf or
i
mpl ement ingt hepr ov isionsoft heFor estConser vationAct ,1980.
c.GangaPr oj ectDi rect or at e
d.Nat ional Af forest at ionandEco- Dev elopmentBoar d.
Inaddi ti
ont ot heabov e, ther ear ev ar iousbodi esandi nst i
tut esundert heMOEFor
wor kingwi t
hi tonot herar eassuchasr esear ch, awar enessdr iveset c.
Ot heri mpor tantMi nist ri
esandDepar tment soft heGov ernmentofI ndial ooki ngaf ter
env ironmentpr ot ect i
oni ncl ude:
TheMi nist ryofRur al Dev elopment-Regener at i
onofbi o-massout sider ecor dedf orest
areas;
TheMi nist riesofPower , Indust r yandNonConv ent ional Ener gySour ces-Ener gy
conser vat ionanddev elopmentofal ter natesour cesofener gy .
TheMi nist ryofWat erResour ces-Moni toringofwat erqual ityandenv i
ronmenti mpact
assessmentf orwat err esour cepr oject s.
TheMi nist riesofWat erResour cesandAgr icul t
ur e-wat ershedmanagement ;
TheMi nist ryofAgr icul tur e-soi lconser vation;
TheDepar tmentofBi ot echnol ogy-t echni cal suppor tforex- siteconser v ationandbi o
saf ety ;
TheMi nist ryofUr banDev el opment-Sol i
dwast ecol lectionanddi sposal in500ur ban
areas.
Stat e-lev el machi ner y:
All thest at egov er nment sl ooki ngaf t erenv ironmentandf or estscol lect i
v ely.
Mostoft hest ateshav eSt at ePol lutionCont rol Boar ds( SPCBs)whi chhav easi gnificant
rolet opl ayi nenf orci ngenv ironment al managementandpol l
utioncont rol asr equired
underdi f fer entl aws.
E.I nter nat ionalAgr eement st owhi chI ndi ai saSi gnat or y
Indiai sasi gnat oryt osi xi mpor t antconv ent ionst hathav eadi r
ectbear ingon
env ironmentpr ot ect i
onandconser vat ion.Thesear e:
TheConv ent iononI nt er nat i
onal Tradei nEndanger edSpeci es( CI TIES)
TheConv ent iononWet landsofI nternat i
onal Impor tance( theRam SarConv enti
on)
TheConv ent iononCl imat eChange
TheConv ent ionf orConser vationofBi ologi cal Resour ces
TheVi ennaConv ent ion/Mont real Pr ot ocol onsubst ancest hatdepl etet heozone
l
ay er
 TheRi oDecl ar at i
ononEnv ironmentandDev elopmentandt heAgenda21, whi chi s
theoper at ional pr ogr ammef orsust ainabl edev el opment .
Twoi mpor t antpr ocedur est obeobser vedi nt hecont extofenv ir
onmentpr otect i
oni n
i
ndust ryar e:
1.Env ironment al ImpactAssessment( EI A)asperanot ificat i
oni ssuedon27Januar y ,
1994
TheEI Ai sst at utor yf or29di ffer entact iv it
iesi ni ndust ry ,mi ni ng, i
r ri
gat ion, powerpl ant s,
portsandhar bour s, at omi cpowerpl ant s, railway sandr oadhi ghway s, br i
dges, ai
rpor tand
communi cat ions.
TheCent ral gov er nmentappr aisest hef ol l
owi ngt ypesofpr oj ects:
Pr oj ect swhi chr equi retheappr ov al oft hePubl icI nvest mentBoar d/Pl anni ng
Commi ssi on/Cent ral Wat erCommi ssion/Cent ral Elect ricityAut hor i
tyet c.
Pr oj ect sr ef erredt ot heMOEFbyot hermi nistries.
Pr oj ect swhi char esensi ti
v eandf all inenv ir
onment allyf ragi l
ear eas.
Pr oj ect sunderdi sput e.
Thepr ocesst obef ollowedi s:
Projectaut hor itiesar er equi redt opr ov ider el ev anti nfor mat ionasi ndi cat edi nt he
guidel inesal ongwi tht heEI Ast at ement/env ironment al managementpl an.
Aftert hepr el i
mi nar yscr utinybyt heMi ni stry,theAppr aisal Commi tteeev aluat esthe
i
mpactandmakesr ecommendat ionsf orappr ov al,reject ionormodi ficat ionsi nthe
project .
Theabov er ecommendat i
onsf or mt hebasi soft heMi ni stry'sdeci sionr egar dingappr oval
/reject i
on.
2.Env ironment al Audi t s:
Alluni tsseeki ngconsentundert heWat erorAi rAct sorAut hor i
sat ionundert he
Hazar dousWast es( Management&Handl ing)Rul es, begi nni ng1993, arer equi redt o
submi tenv ironment al st atement sf ort heper iodendi ng31Mar chonorbef ore30
Sept emberev eryy eart ot heconcer nedSPCB.
TheCent ral andSt at ePol lut i
onCont rol Boar dsar er esponsi blef orenf or cingl egal act i
on
againstpol luter s.
Detai ledbel owar et hedi f
fer entf iscal benef itsf orenv ironmentpr otect ion:
Depr eci at ional lowanceatt her at eof100percentf ori nst allingpol l
utioncont r oldev ices.
Cust omsdut yatr educedr atesof35percentpl us5percentauxi li
ar ychar gesl eviedon
i
mpor tedequi pmentandspar esf orpol l
ut i
oncont r
ol.
Cust omsdut yatt her educedr at eof25percentandf ull exempt ionf r
om auxi liary
char gesf orki tsr equi r edf orconv er sionofpet rol drivenv ehi clest ocompr essednat ur al
gasdr iv env ehi cl es.
Excisedut yatt her educedr ateof5percentonmanuf act uredgoodst hatar eusedf or
pollutioncont rol.
Excisedut yexempt ionf orbr icksandbl ocksmanuf act ur edf rom f lyashandphospho-
gypsum.
Exempt ionundersect ion35CCBoft heI ncomeTaxActi sgi v ent oassesseeswhoi ncur
expendi turebywayofpay ment sonanysum t owar dsassoci ationori nst i
tut i
onswhi ch
carryoutpr ogr ammesf orconser v ationofnat ur al resour ces.
Financi al assi st ancet owar dscapi t
al inv est mentupt o25percentorRs.50l akh,
whichev eri sl ess, i
sgi v enassubsi dyt oi ndust rialistsf rom t hesmal lscal esect orfor
settingupcommonef fluentt reat mentf aci li
t i
es.
Incent iv esi nt ermsofr ebat eonwat ercesspay abl eundert heWat er( Pr ev ention&
Cont rol ofPol l
ut ion)CessAmendmentAct ,1991.
Prov isionofl oansatr educedr atesofi nt erestbyf i
nanci al inst it
ut ionsf ori nstal li
ng
pollutioncont rol dev ices, forexampl e:
Fundedbyt heUSAI D( Uni tedSt at esAgencyf orI ndust ri
al Dev elopment ),theI ndust r
ial
Credi tandI nv est mentCor por at ionofI ndi a( ICICI )hasa$25mi l
lionTr adei n
Env i
ronment al Ser vicesandTechnol ogi es( TEST)schemewhi chcar riesl oansat12. 5per
centwi thnoexchanger iskf ort hedol l
arassi stance
Industr
ialpol
luti
oncont
rol
project
sfundedbyt
heWorl
dBank;t
heBankoff
ersloanson
concessionalter
mswhichisrecei
vedbytheMOEFanddi
sbur
sedthr
oughdif
ferent
financi
alinst
it
uti
ons.

ENVI RONMENTALCLEARANCEPROCEDURES
Undert heEnv i
ronment( Protection)Act ,1986, 24cat egoriesofpr ojectsandi ndust r
ies
willrequi reenv ir
onment alcl
earancef r
om t heCent ral Gover nment
Inaddi ti
on, anypr ojectproposedt obel ocatedwi thin10km oft heboundar yofar eserved
forestoradesi gnat edecological l
ysensi ti
vear eaorwi t
hin25Kmsoft heboundar yofa
national parkorsanct uarywillrequireenv ir
onment alclearancef r
om t heCent ral
Gov er nment .
Foral l otherpr oj
ect s,envi
ronment alclearanceneedt obeobt ainedonl yatt hel eveloft he
StateGov ernment .Clearancei sr equir
edf rom t heenv i
ronment al (
forsit eclearance)and
pollutioncont r
ol angle,whichhast obeobt ainedbyal lunitsotherthancer tai
nspeci fi
ed
non- pol l
utinguni tsinthesmal l scalesect or.
NoObj ectionCer tif
icate(NOC)f orthesi t
ecl earanceusual l
yinvolvescl earancef rom t he
concer nedSt atePol l
uti
onCont rol Boar dNOCi salsor equiredforadequacyofpol luti
on
cont rol measur es.
Ingener al,theSt atePol l
uti
onCont r
olBoar dist heconcer nedaut hor i
tywhi chwi l
lbet he
StatePol luti
onCont rolBoardist heconcer nedaut horitywhi chwi l
lusual lyspeci f
ycer tain
pollutioncont r
ol measur estobet akenbyt heuni t.

AUTHORI TIESOFSTATESFORENVI RONMENTALCLEARANCE

Andhr aPr adeshPol l
ut i
onCont rol Boar d, 6/ 6/115- 124, Kav adiaguda, Secunder abad-500
003.
Assam St ateBoar df orPr event ionandCont rol ofWat erPol l
ution, PiyaliPhokanRoad,
Rohaba
Guwahat i-781001.
BiharSt ateWat erPollutionCont rol Boar d, Rudr aBhawan, EastBor ingCanal Road
Patna-800001.
Gujar atWat erandAi rPol l
utionCont r
ol Boar d,Pat nagarOl dAssembl yBui ldi
ng,
2ndFl oorSect orNo.17, Gandhi nagar-382017.
Har yanaSt at eBoardf orPr ev ent i
on, andCont rol ofWat erPol lut i
on, Chandi gar h-160008.
Himachal Pr adeshSt ateBoar df orPr ev ent i
on, andCont rol ofWat erPol l
ut i
on, Jaksal
House
Kasumpt i
, Shiml a-171002.
Jammu&Kashmi rStateBoar df orEnv ironment al,
Impr ov ement&Ecol ogyDepar tment
Div.Pl anni ngandDev el
opment ,NewSecr etariat, Jammu/Sr inagar .
Karnat akaSt atePol l
ut i
onCont r ol Boar d, 7thand8t hFl oor sPubl icUt i
li
tyBui lding
Mahat maGandhi Road, Bangal or e-560001.
KeralaSt atePol luti
onCont rol Boar d, Kest onRoad, Kawdi ar( P.O. )
,Tiruv anandhapur am -
694003.
Madhy aPr adeshSt at ePol l
ut i
onCont rol Boar d, Paryav acanPar isar,Sect orE-5, Arer
a
Colony
Bhopal .
Mahar asht raSt atePol l
utionCont rol Boar d, ArmyandNav yBui lding,148, M.G.RoadFor t
Bombay-400001.
OrissaSt atePol l
uti
onCont rol Boar d, Gaut am Nagar ,Bhubaneshwar-751014.
PunjabSt at eBoar dforPr event i
onandCont rol ofWat erPol l
ution, 11-A, TheMal l
Patiala.
Rajast hanSt ateBoar df orPr event i
onandCont rolofWat erPol luti
on, J-2/35, Mahav eer
Mar g
Jaipur -1.
Depar t
mentofEnv i
ronment( Sikki m) ,Mahat maGandhi Road, Gangt ok, Sikki
m.
Tami lNaduPol lutionCont rolBoard,80, Kamar aj
arSal ai,
Ramakr ishnaNagarR. A.
Puram
Madr as-600028.
UttarPr adeshPol lut
ionCont rolBoard, B-159, NiralaNagar ,Lucknow-226007.
WestBengal Prev entionandCont r
ol ofWat erPol l
uti
onBoar d,Indust r
yHouse, 10,
CamacSt reet, Cal cut t
a-700017.
Direct orateofSmokeNui sance, 60-B,Chowr ingheeRoad, Calcutta-700020.
Depar tmentofEnv ir
onment( Del hi
),Gov ernmentofI ndia,BikanerHouse, NewDel hi.
Cent ral Boar df ort hePr ev ent
ionandCont rolofWat erPolluti
on( Del hi
),A-1,Chandra
House
Dr.Mukher jeeNagar, NewDel hi-110009.
Cent ral Boar df ort hePr ev ent
ionandCont rolofWat erPolluti
on( Goa) ,Dhav al
iMalPonda
Goa-403408.
Cent ral Boar df ort hePr ev ent
ionandCont rolofWat erPolluti
on( Pondi cherry)
"Ballamal yayam"42, Sel l
am Nagar
Pondi cherry-605011.
Env ironment alRest ricti
onsf orSSISect or
Env i
ronment al clearancespr oceduref orsmal lscaleindust r
ieshav ebeenr ati
onali
sedand
simpl ifiedexcepti nthecaseof17hazar dousi ndust r
ies.
Nowamer eacknowl edgmentoft heappl i
cationbyt heSt ateEnv ironmentBoar dwouldbe
sufficient .
Sev ent eenhazar dousi temsar e
Fertili
zer( Ni trogen/ Phosphat e)
Sugar
Cement
Ferment ati
onandDi stil
lery
Alumi nium
Petro- chemi cals
Ther mal power
Oilref inery
Sulphur icaci d
Tanner ies
CopperSmel ter
ZincSmel ter
Ir
onandSt eel
PulpandPaper
Dy eandDy einter medi aries
Pest icidesmanuf acturingandf ormulation
Basi cDr ugsandPhar maceut icals

Gener alForestandwi l
dli
feWat erAir
Gener al
1986-TheEnv i
ronment( Protecti
on)Actaut hori
zest hecent r algovernmentt opr ot
ect
andi mpr ov
eenv ironmentalqualit
y,controlandr educepol lutionf rom allsources,and
prohibitorrestr
ictthesetti
ngand/ oroperationofanyi ndustrial f
acil
it
yonenv ir
onmental
grounds.
1986-TheEnv i
ronment( Protecti
on)Rul esl aydownpr ocedur esforsettingstandardsof
emi ssi
onordi schargeofenv i
ronment al poll
utants.
1989-Theobj ect i
veofHazar dousWast e( ManagementandHandl ing)Rul esisto
cont r
ol t
hegener ati
on,coll
ect
ion, t
reatment ,import,storage, andhandl ingofhazar dous
wast e.
1989-TheManuf act
ure,Stor
age, andI mpor tofHazar dousRul esdefinet hetermsused
i
nt hiscontext,andset supanaut horit
yt oinspect ,
onceay ear ,t
heindust ri
alacti
vit
y
connect edwithhazar douschemi calsandi solat
edst oragef aci li
ti
es.
1989-TheManuf act
ure,Use,Impor t,Export,andSt orageofhazar dousMi cr
o-
organi sms/Genet icallyEngi neer edOr gani smsorCel lsRul eswer ei ntroducedwi tha
viewt opr ot ectt heenv ironment ,nat ure, andheal th, inconnect i
onwi tht heappl icat ionof
genet echnol ogyandmi croor gani sms.
1991-ThePubl i
cLi abi li
tyI nsur anceActandRul esandAmendment , 1992wasdr awnup
topr ov idef orpubl icliabi l
ityinsur ancef ort hepur poseofpr ov i
di ngi mmedi ater elieftot he
per sonsaf f ect edbyacci dentwhi lehandl inganyhazar doussubst ance.
1995-TheNat ionalEnv ironment al Tribunal Acthasbeencr eat edt oawar d
compensat ionf ordamagest oper sons, proper ty ,andt heenv ironmentar isingf rom any
act ivit
yi nvol vinghazar doussubst ances.
1997-TheNat ionalEnv ironmentAppel l
at eAut hor i
tyActhasbeencr eat edt ohear
appeal swi thr espectt or est r
ictionsofar easi nwhi chcl assesofi ndust r i
eset c.ar ecar r
ied
outorpr escr ibedsubj ectt ocer t
ainsaf eguar dsundert heEPA.
1998-TheBi omedi calwast e( ManagementandHandl ing)Rul esi sal egal bindingont he
heal thcar ei nst itutionst ost r
eaml inet hepr ocessofpr operhandl i
ngofhospi tal wast e
suchassegr egat ion, di sposal ,collect i
on, andt reat ment .
1999-TheEnv ironment( Siti
ngf orI ndust rialPr oj ect s)Rul es, 1999l aydowndet ai led
prov isionsr elat ingt oar east obeav oidedf orsi ti
ngofi ndust ries, precaut ionar ymeasur es
tobet akenf orsi tesel ect i
ngasal sot heaspect sofenv i
r onment al prot ect i
onwhi ch
shoul dhav ebeeni ncor por ateddur i
ngt hei mpl ement at ionoft hei ndust rial dev elopment
proj ect s.
2000-TheMuni ci palSol idWast es( ManagementandHandl ing)Rul es, 2000appl yto
ev erymuni cipal aut hor ityr esponsi blef ort hecol lect ion, segr egat i
on, st or age,
transpor tation, pr ocessi ng, anddi sposal ofmuni cipal sol idwast es.
2000-TheOzoneDepl etingSubst ances( Regul at ionandCont rol)Rul eshav ebeenl aid
downf ort her egul ationofpr oduct ionandconsumpt i
onofozonedepl et ingsubst ances.
2001-TheBat ter ies( ManagementandHandl ing)Rul es, 2001r ulesshal lappl yt oev ery
manuf act ur er ,i
mpor t
er ,re-condi t
ioner , assembl er ,deal er ,auct i
oneer ,consumer ,andbul k
consumeri nv ol vedi nt hemanuf act ure, pr ocessi ng, sal e, pur chase, anduseofbat teri
esor
component ssoast or egul ateandensur etheenv ironment allysaf edi sposal ofused
bat teries.
2002-TheNoi sePol lut i
on( Regul ationandCont r ol)( Amendment )Rul esl aydownsuch
termsandcondi tionsasar enecessar yt or educenoi sepol l
ut ion, per mi tuseofl oud
speaker sorpubl i
caddr esssy stemsdur ingni ghthour s( bet ween10: 00p. m.t o12: 00
mi dni ght )onordur inganycul tural orr eligiousf est iveoccasi on
2002-TheBi ol ogi calDi ver si
tyActi sanactt opr ov i
def ort heconser v at i
onofbi ol ogical
div ersity ,sust ainabl euseofi tscomponent s, andf airandequi tabl eshar ingoft he
benef itsar isi ngoutoft heuseofbi ologi cal resour cesandknowl edgeassoci atedwi thit

Forestandwi ldlife
1927-TheI ndi anFor estActandAmendment ,1984, isoneoft hemanysur viving
coloni alst
at utes.Itwasenact edt o‘consoli
dat ethelawr el atedtofor est,t
het ransitof
forestpr oduce, andt hedut yl eviableont imberandot herf orestproduce’ .
1972-TheWi ldl i
fePr otectionAct ,Rules1973andAmendment1991pr ov i
desf orthe
protect i
onofbi rdsandani mal sandf orallmat tersthatar econnect edt oitwhet heritbe
theirhabi t
atort hewat erholeort heforestst hatsust ainthem.
1980-TheFor est( Conser vation)ActandRul es,1981, prov idesfort heprotect i
onofand
theconser vationoft hefor ests.
Wat er
1882-TheEasementActal lowspr ivat
er i
ght st ousear esour cethati s,groundwat er,by
viewi ngitasanat tachmentt ot hel and.Italsost atest hatal lsurf
acewat erbel ongst othe
stateandi sast atepr operty.
1897-TheI ndi anFi sher i
esActest abli
shest woset sofpenal off
enceswher ebyt he
gov ernmentcansueanyper sonwhousesdy nami t
eorot herexpl osivesubst ancei nany
way( whethercoast alorinland)wi thintenttocat chordest royanyf ishorpoi sonousf i
sh
i
nor dertoki ll
.
1956-TheRi verBoar dsActenabl est hest atest oenr oll t
hecent ralgov er nmenti nset ting
upanAdv i
soryRi v erBoar dtor esolveissuesi ni nter
-st atecooper at i
on.
1970-TheMer chantShi ppingActai mst odeal withwast earisingf rom shi psal ongt he
coast al ar easwi thinaspeci fi
edr adius.
1974-TheWat er( Pr ev ent i
onandCont rolofPol l
ution)Actest ablishesani nst i
tutional
str
uct uref orpr event i
ngandabat i
ngwat erpol lution.Itest abli
shesst andar dsf orwat er
qualityandef fl
uent .Pol lut i
ngindust ri
esmustseekper mi ssiont odi schar gewast ei nto
eff
luentbodi es.TheCPCB( CentralPol l
ut i
onCont r
ol Boar d)wasconst i
tut edundert his
act.
1977-TheWat er( Pr ev ent i
onandCont rolofPol l
ution)CessActpr ovidesf orthel ev y
andcol l
ect i
onofcessorf eesonwat erconsumi ngindust r i
esandl ocal aut hor i
ties.
1978-TheWat er( Pr ev ent i
onandCont rolofPol l
ution)CessRul escont ainst hest andar d
definitionsandi ndi catet hekindofandl ocat i
onofmet er sthatev er yconsumerofwat er
i
sr equi redt oaf fi
x.
1991-TheCoast alRegul ati
onZoneNot if
icat ionput sr egul ati
onsonv ariousact i
vities,
i
ncludi ngconst ruct ion, arer egulated.Itgi vessomepr otect iont othebackwat ersand
estuar ies.
Air
1948–TheFact oriesActandAmendmenti n1987wast hef irsttoexpr essconcer nf or
thewor kingenv i
ronmentoft hewor kers.Theamendmentof1987hasshar penedi ts
environment alfocusandexpandedi tsappl icationt ohazar douspr ocesses.
1981-TheAi r(Pr ev ent ionandCont rol ofPol l
ut ion)Actpr ovidesf orthecont rol and
abat ementofai rpol lution.I tentruststhepowerofenf orcingt hisactt ot heCPCB.
1982-TheAi r(Pr ev ent ionandCont rol ofPol l
ut ion)Rul esdef inest hepr ocedur esoft he
meet i
ngsoft heBoar dsandt hepower sent rust edt ot hem.
1982-TheAt omi cEner gyActdeal swi tht her adi oact i
v ewast e.
1987-TheAi r(Pr ev ent ionandCont rol ofPol l
ut ion)AmendmentActempower st he
centr al andst atepol l
utioncont rolboar dst omeetwi thgr av eemer genciesofai rpol lution.
1988-TheMot orVehi clesActst atest hatal lhazar douswast eist obepr oper l
ypackaged,
l
abel led, andtranspor t
ed.

Wr i
ti
ngaBusi nessplan, component sofaB- Plan
BusinessPl an
Businesspl aniswrit
tenst atementofwhatanent r
epreneurproposestotakeup.Itisaa
kindofgui deorcourseofact i
onwhatt heentrepreneurhopest oachieveinhisbusiness
andhpwi shegoi ngtoachi eveit.
M JDol l
inger:bpisthef ormal writ
tenexpressionoftheent r
epreneuri
alvi
sion,descri
bing
thestrategyandoper ati
onsoft heproposedv enture
JM KAPLAN: BPi sthewr it
tendocumentt hatspel l
soutlikearoadmapwhery ouar e,
wherey ouwantt obe, andhowy ouwanttogett here.

Abusi nessplanisalsoar oadmapt hatpr ovidesdi rectionssoabusi nesscanpl ani t

s 
futureandhel psitav oidbumpsi nther oad.Thet imey ouspendmaki ng yourbusi ness
plant hroughandaccur ate,andkeepi ngi tup-to-date,isani nv estmentt hatpay sbig
dividendsi nthelongt erm.
Abusi nessplanisawr itt
endocumentt hatdescr i
besabusi ness, i
tisobj ecti
ves,itis
strategies,themar ketitisi nanditsf i
nanci alforecast s.Ithasmanyf unct i
ons,from
secur ingexternalfundingt omeasur i
ngsuccesswi thi
ny ourbusi ness.
Awr i
ttendocumentdescr i
bingthenat ureoft hebusi ness, thesalesandmar keti
ng
strategy ,
andt hefi
nanci albackground, andcont ainingapr ojectedprofitandl oss
statement
Thepur poseofabusi nesspl an
Thebusi nessplangener allyservestwomai nf unct i
ons:
 I tprovi
desy ouwi thadet ail
edsetofgui del
ines, settingouthowt ostartyour
business,whati twillcosttoseti tup, whatr esour cesar erequiredtoensur et he
 successoft hebusi ness, whatneti ncomey oucanexpectwi ll f
lowf rom t he
busi nessandhowl ongi twi llt aket or eachbr eakev enoper at ingl ev els.
 Th ebusi nesspl anmaybeusedt oconv incebanksand\ ori nv est or st haty our
pr ospect ivebusi nessi sv iabl eandcanbeusedt of indf inanci alsuppor tf ort he
busi ness
COMPONENTSOFBUSI NESSPLAN:
Abusi nessi sact uallyacompi lationofsev er al sub- plans.Asi mpl ifiedbusi nesspl ancan
bepr epar edwi thint hemuni cipal ityt oconsi stof :
 
 Ti tl
epageandt abl eofcont ent s;
 E xecut ivesummar yandbusi nesspr of i
le;
 Ma rket ingpl an;
 Op erat ionspl an
 Hu manr esour cespl an; and
 F i
nanci al plan
Prepar ingabusi nesspl anmeansdev el opi ngacompr ehensi vesetofoper ational
acti
v i
tiesar isingf r
om t hest rategi cpl ans.I ti sanessent ial stepi nt hepr epar ationf or
PPPst hatmuni cipal it
iesknow:
Whatt heobj ect ivesar e;
 Ho wt hePPPopt ionwi llbemanaged; and
 Ho wt hePPPgoal swi llbeat tained.
A.Titlepageandt abl eofcont ent s
Thet itlepageshoul di ncl udet henameoft hepar tner shi p, theper iodoft imet hatt hepl an
cover s,thedat et hatt hepl anwaspr epar edaswel lasacont actper son, phonenumber
andaddr ess.Thet i
tlepageshoul dl ookpr of essi onal :itist hef irstpagear eaderseesand
fi
rstimpr essi onsar ei mpor tant
Thet abl eofcont ent sl i
st st het opi cscov eredbyt hepl an.Asar oadmap, ital l
owst he
readert oj umpi mmedi at elyt ot hosesect iont hatar eofmosti nter est
B.Execut iv esummar yandbusi nesspr of i
le
Thepur poseoft heexecut ivesummar yi st ocapt uret hehi ghlight soft hebusi nesspl an
andser veasaqui ckr efer ence.Thesummar yi susual lycompl et edaf tert her emai nderof
thepl anhasbeenwr ittenandshoul dpr ef erabl ybeabout1or2pagesl ong.I tshoul d
i
nclude:
 Ab ri
efdescr i
pt ionoft heser v ice, pot ent i
al cust omer sandmar ket s;
 Pu rposeandconceptoft hepar tner shi p(orwhyt hemar ket pl aceneedst he
ser v i
cesoft hepar tnershi p);
 Bu sinesst arget sandhowi tcanbeat tained
 Re qui r
edf i
nanci ngandr esour ces, howt hef undswi llbeusedandhowt hef unds
wi llber epai d; and
 L i
nkaget ot hepar tner shi pst rategi cpl an.
Alongwi t
ht his, abr iefdescr ipt ionoft hepar tnershi por gani sat i
onandowner shi pshoul d
bepr ov ided.Ot herusef ul infor mat ioni ncl udesmanagement ,prev iousf inanci ng, the
proposedst ar t-
updat eofoper at ions, impor tantdet ai l
soft hepar tner ship’ scur rent
mar ketar ea, cust omer sandt rendst hatt hepr oposedbusi nesscanbui l
dupon.
C.Mar ket ingpl an
Themar ket ingpl andescr ibes, ingener al ter ms: thei ndust r
yi nwhi cht hepar t
ner ship
i
ntendst ooper at eandt hest rat egyt openet rat eordev elopt het ar getmar ket: howmuch
i
spl annedt obesol d: whot hecust omer sar e: howt heser viceswi llbepr iced: andhow
theser vi
ceswi l
l bepr omot ed.Af ull mar ket ingpl anandst r
ategyneednotbei ncl udedi n
the busi nesspl anbutanumberofal ternat i
v esneedt obeconsi der edandev al uatedi n
thep- planni ngpr ocessbef or et hemar ket ingpl ani sf inalized.
Ther ear ev ariousexer ci sest hatcanbehel pf ul int hepl anni ngpr ocess:
 SWOTa nal ysis-st rengt h, weaknesses, oppor t unitiesandt hr eat s:
 PE STanal ysis-pol itical, economi c, soci alandt echnol ogical
 Ba lancedscor ecar d-anal y sisoft hei mpactofachi ev i
ngobj ect ivesf rom af i
nancial
 per spect i
v e, acust omerper spect iveandani nt er nal per spect ive, andofi nnov ation
andl ear ning, t
oget herwi thi dent ificationofcr i
t ical success  fact or sand
per for mancemeasur es: and
 Br ainst or mi ng-f oral ter nat ivescenar i
os, oppor t uni tiesandst rat egi es.
Themar ket ingpl anmustcov er \i
ncl ude:
 E videncet hatt hepar tner shi pi sawar eofmar ketcondi tions(si zeandst ruct ure) ,
thegener al economyandcompet iti
on:
 Th ei mpl i
cat i
onsofchange( ort rends) , newt echnol ogi es, newpr oduct s, differ ent
l
ifest y les, abi li
t yofcust omer st oaf fordt heser vice:
 Th ei mpl i
cat i
onsofl egal orpol i
tical const r
aint sonhowt heser vicesar epr oduced
anddel ivered:
 Th ecompet iti
v eadv ant ageoft hepar ticularser vicet obepr ov i
dedori fi tf i
llsa
par ti
cul arni chei nt hemar ket place:
 Th ebasi sf orpr i
ci ngt heser vicebasedoncost s, thecompet itionorwhatt he
mar ketwi llbear :
 Th egeogr aphi cl ocat ioni nwhi cht hepar tner shi pwi llconcent ratei t spr omot ion
and
 Th ebestwayt odi st ri
but et heser vicest ocust omer s.
D.Oper ationpl an
Theoper ationpl ani sabr i
efout lineoft hebasi soper at ionoft hePPPopt ion.Thi smaybe
obv ioust osomepeopl e, butnotnecessar il
yt oev er yst akehol der .
Thef ollowi ngneedconsi der at ion:
 Ho wt heser vicei sbepr ov ided;
 Wh er et hesuppl iesandmat er i
al swi llbepur chasedandhowt heser v
icei st obe
del iver ed;
 Wh ataf t
er -salesser vicei sr equi red
 Wh atl and, bui l
ding, faci li
tiesandequi pmentar er equi r ed, includi ngcost sand
financi ng, r enov ations, local taxesandut ili
tycost s;
 Wh atempl oy eeandmanagementpl ansar er equi r ed, incl udi nghowski lled
l
abor  canbeaccessedi frequi r
ed;
 Th ebusi nessl ocat iont hati schosenandanexpl anat ionofwhyi tshoul dser vet he
par tner shipneeds, pr oxi mi tyt ocust omer s,suppl ier s, transpor tationcost sand
l
ocat ionofcompet itor s; and
 t hepr oduct ioncapaci ty ,turnov err atesorser v i
cest hatcanbeachi eved
real i
st ical l
ywi t ht heexi st i
ngorpr oposedpl anandst af f.
E.Humanr esour cespl an
Managementi scr iti
cal lyi mpor tantt ot hesuccessofanyPPPopt ion.I nv estor sorl ender s
arel ooki ngf orabal ancedt eam ofpeopl et ocov ert hei mpor tantar easofmanagement ,
mar ket ing, account i
ng, andt het echni cal skil
lst odel iveront hebusi nesspl an.Human
resour cesmanagementr equi rest hinki ngabouthowt hepar tner shi pwi ll recruit, screen,
mot ivat e, trainanddi scipl inet hest af fneededt owor k.Thehumanr esour cespl anshoul d
cov er\incl udet hepoi ntsbel ow:
*itshoul dnamet hekeypeopl eoper atingt hePPPopt i
on, andout li
net heeducat i
onor
exper ienceeachoft hem br ingt oi t
Itshoul dexpl ainhowkeyar easoft heoper ationar ehandl eandbywhom.An
organi sat ional char tmaybeusef ul i
nt hi sr egar d.Cont ingencypl ansshoul dbei ndi cat ed
ofakeyper soncannotwor kf oranext endedper iodoft ime
Itshoul di ndi cat eanyweaknessesi nt he, managementt eam andt hest rategyt o
ov ercomet eam andi nwhatt imef rame.Tr ai
ni ngexi st ingst af f,recr uitingnewempl oy ees
orhi ri
ngout sideadv iser s ar esomeoft hepossi biliti
es
 i tshoul di ndi cat ewhet hersal aryandcompensat i
onofmanager sandempl oyee
ar ecompet itivewi thi nt hei ndust ryandwhet heri ncent iv essuchascommi ssions,
bonusesorpr of i
tshar ingar ebei ngof fered.
 I sshoul dnamet heboar dofdi rect orsorpr ofessi onal adv i
ser s  andi ndicat ehow
managementwi lluset hei rexper ienceandgui dance.Thet i
mi ngandf requencyof
 boar dmeet ingshoul dal sobei ndicat ed.
F.Fi nanci al plan
Thef inanci al plani skeycomponent soft hebusi nesspl an.Thi si sbecauset hepr ocessof
creat ingf i
nanci al pr oject ionsf orPPPopt i
onr ev enueandexpenses, cashf lowand
financi al posi ti
onwi llfor cet het eam pr epar i
ngt hebusi nesspl ant oexami neal loft he
ot herkeycomponent soft hepl an.I ndoi ngt his, t
heywi llbeabl et odescr ibet heirpl ani n
monet ar yter msanddet ectanydi scr epanci es, gapsorunr eal i
sticassumpt ionsmade
ear li
er .Thef i
nanci al plani sal soav aluablet ool s forcr edi torsorgov ernmentagenci es
whenev aluat i
ngt hepar tner shipneedsanduseoff unds.
Thef inanci al planconsi stofani ncomest atementacashf l
owsummar yt hebal ance
sheetcapi t
al sal esandpur chasesandaf inanci ngschedul e.
Incomest at ement : t
hepur poseoft hei ncomest atementi st odi scl oset heannual
rev enuesandexpensesofabusi nessov ert heper iodoft i
met hatt hepl ancov ers.Foran
exi ti
ngbusi ness, i
nf or mat i
onf oratl eastt hel astoneort woy earsi snecessar y.
Cashf lowsummar y:ofal l t
hesuppor ti
ngdocument s, thecashf lowpr oject ioni soneof
themostdi fficul ttopr epar e.Basi cal l
y ,i
tis  aneducat edguessaboutwhenandhow
muchmoneywi l
l becomi ngi nt oandgoi ngoutofpar tner shi popt ion.Thecashf low
for ecastenabl esmanager st odeci dewhatcanbeaf forded, wheni tcanbeaf forded and
howt hepar tner shipwi ll bekeptoper atingonamont htomont hbasi s.Thi si nfor mat ionis
usef ul toi ndi cat et hepr oject edi ncr easesordecr easesofabankl oant hatmaybe
requi reddur ingt hey ear .Quar terlysummar iesar eof tenadequat e, butoccasi onal l
y
mont hlysummar i
esar er equi r
edf ort hef i
r sty earofoper at ion
Thebal ancesheet : t
hebal ancesheetdescr i
best heasset s, thel i
abi li
ti
esandt heequi tyof
thepar tnershi patapar ticul arpoi nti ntime.I tisawi delyusedaccount i
ngst atement  that
theeconomi cr esour cesoft heor gani sationandt hecl aim ont hoser esour cesby
credi tor s.Thi sinf or mat ioni susef ul i
nt hati tal lowsmanagemanagementandcr edi t
or s
tocompar et hepar tner shi pest i
mat es,aswel lasi tispastper for mance, agai nstindust r
y
av erages.
Capi tal sal esandpur chases: i
nv est or sandl ender swi l
lrequi reddet ail
si nfor mat ionont he
capi tal pur chasest hat  ar eant i
ci pat eddur ingt hepl anni ngper i
od, aswel lasi nfor mat ion
onhowt hese asset sar et obef inancedandt heexpect edusef ul lifeoft heasset s.
Capi tal asset si ncl udel and, bui l
di ngandequi pment
Financi ngschedul e:t hef inanci ngschedul eorl oansummar yshoul dpr ov idedt her eader
wi thasnapshotv iewofexi stingandnewl oanst hatwi l
lbehel dbyt hepar tner ship.
Infor mat i
onshoul dout l
inet hei nt erestr atebei ngpai d, frequencyofpay ment s,secur ity
giv en, typeofl oanandt heexpect edt erm oft hel oan.Forexi ti
ngl oans, thenameoft he
financi al inst itutionshoul dbei ndi cat ed
Nooneexpect edanewpar tner shi pt omakeapr of i
ti nt hef i
rstmont h,quar terori nsome
casesy ear .Howev er,ther eshoul dbel i
ghtatt heendoft het unnel .Inter estonl oansi s
repay abl efr om t hef irst dayofoper at i
on, andt hepar tner shi pmustshowar etur nont he
i
nv est ment ,int er msofbot ht i
meandmoney ,wi t
hi nar eal i
st ictimef ramei fist obe
viabl e.

Cont
ents:
1.Gener ali
nformat i
on
2.Pr omot ers
3.Locat ion
4.Land&bui l
ding
5.Pl ant&machi nery
6.Pr oductionpr ocess
7.Ut il
it
ies
8.Tr ansportandcommunicat
ion
9.Rawmat eri
als
10.Manpower
11.Products
 12.
Market
13.
Requirementofworki
ngcapit
al
14.
Requirementoffunds
15.
Costofproducti
onandproducti
vi
tyoff
ir
stt
eny
ear
s
16.
Breakevenanal
ysis
17.
Scheduleofimpl
imentat
ion

GeneralGui del
inesforwr i
tingpl an
Asmuchasy ourplanr epresent sy ourdream andi sveryimpor t
anttoyou,itmaynotbe
ashighont heagendasoft hepeopl ewhor eadit
.Wheny ousitdowntowr iteyourplan,
thi
nkofwhowi l
lbereadi ngi tandputy ourselfi
ntothei
rshoesasmuchaspossi ble.In
mostcases, t
hepeopl ewhowi ll
r eadyourpl anaregoingt obepotenti
alinvest
ors,
bankers,and/orpotential partners.Yourr eadershavelikelyseendozens,andper haps
evenhundr eds,ofplans.Thesepeopl edonotof tenhaveagr eatdealoftime,sopr epar
e
yourplanaccor di
ngly.Ingener aly oushould:

Wri
tetheplanyoursel
f.Gethelpi
fyouneedit,
butdonotlety
ouraccount
ant,
bookkeeper,
orotherprofessi
onalwri
tey
ourplanfory
ou.Youmayl ett
hem hel
pyouwit
h
thefi
nancial
plan,f
orexampl e,
butyouneedtoknowy ourpl
aninsi
deandout-
andthe
bestwaytoensurethatistowr i
tei
tyour
sel
f.

Backupev erycl
aimy
oumakewi t
hsupporti
ngevidence.I
ncl
udesur
vey
sanddet
ail
ed
marketr
esearchasanaddendum orappendi
xtoyourplan.

Wr
it
ecl
ear
lyandt
othepoi
nt,
keepi
ngy
ourpr
oset
oami
nimum.

Avoidhyper
bole:don'tover
stateyourcase.Si
mi l
arl
y,av
oidunnecessaryadject
ivessuch
as"fant
ast
ic,
""amazing,""
astoundi
ng,""
ir
resi
sti
ble,
"andsoon.Letther eaderfor
m hisor
herownopini
on.

Ensur
ethaty
ourwr
it
ingi
ser
ror
-f
reeandedi
tedf
orpr
operf
orm andsy
ntax
.

Chooseasi
mpl
e,commonf
ontsuchasTi
mesNewRoman,
andst
ickwi
thi
tthr
oughout
t
hedocument
.

Useprofessional
lypr
oduceddrawings,
photogr
aphs,
andgr aphs.Unl
essyouar
ea
prof
essi
onal,yourownatt
emptsatartwil
llookamat
euri
sh.Thesamei str
ueforv
ideos,
if
you'
reusi
ngt hem,oracomputer
-baseddemo.

Bi
ndt
hepagessi
mpl
y.Cer
loxori
tsequi
val
enti
sli
kel
ysuf
fi
cient
.

Makesur
eyoui
ncludeyourcontactinf
ormat
ionr
ightont
hecov
er.Thi
sisoneoft
he
mostcommonmi
stakesentr
epreneursmake

ComponentsofaB- Plan
Components:
 Generali
nformat i
on
 Prel
iminaryanalysisandalt
ernati
ves
 Proj
ectdescr i
pti
on
 Marketi
ngpl an
 Capit
alrequirement sandcosts
 Operati
ngr equir
ement sandcosts
 Fi
nancialanalysis
 Economicanal ysi
s
 Miscell
aneousaspect s
 Gener alinf
ormati
ons:
Bi
odataofpr omoters
I
ndustryprofil
e
Consti
tuentoforgani
zat
ion
Productdetail
s

 Pr ojectdescr i
pti
ons:
Location
Projectinfr
a
Rawmat erial
s
Skill
edl abor
Ut i
li
ti
es
Poll
utioncont rol
Communi cation
Transpor t
Otercommonf acil
it
ie
Productionpr ocess
Machi nerynequi pments
Capaci t
yoft hepl ant
Technol ogysel ected
R&D

 Mar keti
ngPlans:
Demndnsuppl y
Expect edpr i
ce
Mkt gst arat
egy
Aftersalesservi
ce
Transpor ati
on

SECTI ONOFTHEPLAN
Thef irsttwosect i
onsshoul dappearatt hebegi nningofy ourpl an.Itisnotascr i
ti
cal t
hat
theot hersf oll
owi nt heor dergi ven, butt hissequencewi ll
likelywor kwel l
.
Execut iveSummar y
Thisi sbyf art hemosti mpor tantpar tofy ourpl an.I tshoul dbenomor ethantwopagesi n
l
engt h, orless.St atet hei dea, theoppor tunit
y, howmuchmoneyy ouneed, wher eyou
hopet ogeti t,howi twillbespent ,andhowy ouwi llpayi tback.Reader swhoar e
i
nterest edmayt hengoont oreadt her estofy ourpl an.Bewar ned, i
fyourexecut i
ve
summar yismor et hant hr eepagesl ong, itwilllikelynotber ead.
YourPl annedVent ure
Descr ibey ouri deaascl ear lyaspossi ble,withdi agr ams, phot ographsoranyot her
medi um necessar yt ocommuni catei tt other eader .Backupt hei deawi thadescr ipti
on
ofthet argetmar ket,tellwhyt heoppor tunityexi sts, andwhyy ourideawi l
lcapt urethat
mar ket .
Mar ketResear ch
Explainhowy oudet ermi nedt hepr oductorser v i
cewasappr opriatetot hemar ket.Incl
ude
explanat ionsoft he" fourP' s"( pr
ice, pr oduct,pr omot ion,placement )
.
Backgr oundandHi st ory
Tellwhoy ouar e,whatexper i
enceandski l
lsy oubr ingt othisv enture,andwhet herornot
you'ver uny ourownbusi nessesi nt hepast .Descr ibeandexpl ai
nt hei
rsuccessesor
fai
lures.I ncl udey ourown, shor t
,biogr aphyher e.ManagementTeam Pr ovi
det henames,
andshor tbi os, oft hepeopl ey ouwi lluset of il
l thekeyposi t
ionsi nthebusi ness.
Start-upPl an
Tell whenandwher eyoupl antost artthebusi nessandwhyy ouchoset histimef r
ame
andl ocat ion.Oper ati
onal Plan
Descr i
be, indetail
,howy ourbusi nesswi l
loperate.I
ncludedi agramsofpr oductionor
serv i
cear easifappr opri
at e.
Mar ket i
ngPl an
Descr i
be, indetail
,howy ouwi llattr
actcust omersorcl ientsandhowy ouwi l
ldelivery our
productorser vi
cet othem.
Financi alPl an
Prov ideadet ail
edf i
nanci alplan,incl
udi ngacash- fl
owpr ojection,thataccount sforthe
moneyy ouwi l
lneed( borrow)andt her epaymentpl anandr eturnoni nvest mentt o
i
nv est ors.
Appendi x
Includey ourownandy ourt eam' sdet ailedbiographiesher easwel lasaddi ti
onal mar ket
resear chandanyot herinf ormat i
onthati stoodet ai
ledt obei ncludedint hebodyoft he
plan.
Mostent repreneurshav et ocomeupwi ththei
rownst art-
upmoney–ei therfrom t heir
ownsav ingsorf rom relativeswhoknowandt rustthem.Butt herear eothersour cesof
capi t
al outt herethaty oumi ghttapint o.Not hi
ngi seasyorst rai
ghtforwar daboutr aising
start-upcapi t
alforyourv ent ure.Herear esomet ypi
cal potentialsourcesofst art-
up
money .

Wr iti
ngupaBusi nesspl an
Nowt haty ouunder standwhyy ouneedabusi nesspl anandy ou' vespentsomet i
me
doingy ourhomewor kgat heringt heinf or
mat i
ony ouneedt ocr eateone, it'
st i
met orollup
yoursl eev esandgetev erythi
ngdownonpaper .Thef ollowingpageswi lldescr ibei ndetail
thesev enessent ial sect i
onsofabusi nesspl an: whaty oushoul di nclude, whaty ou
shoul dn' tincl ude, howt owor kt henumber sandaddi tional resour cesy oucant ur ntof or
help.Wi tht hati nmi nd, j
umpr ighti n.
Withint heov erall out l
ineoft hebusi nesspl an, theexecut ivesummar ywi l
lfollowt het i
tl
e
page.Thesummar yshoul dtell thereaderwhaty ouwant .Thi si sv eryimpor tant .Allt
oo
often, whatt hebusi nessownerdesi resi sbur iedonpageei ght .Clear l
yst atewhaty ou're
askingf ori nt hesummar y.
Busi nessDescr iption
Thebusi nessdescr i
pt i
onusual lybegi nswi thashor tdescr i
pt i
onoft hei ndust ry.When
descr ibingt hei ndust r
y,discusst hepr esentout lookaswel lasf uturepossi bili
ties.You
shoul dal sopr ov idei nformat iononal lthev ariousmar ketswi thint hei ndust r
y ,i
ncl uding
anynewpr oduct sordev elopment sthatwi l
lbenef itoradv ersel yaf fecty ourbusi ness.
Mar ketSt rategi es
Mar ketst rat egi esar ether esul tofamet iculousmar ketanal y sis.Amar ketanal ysis
forcest heent repr eneurt obecomef ami l
iarwi thal laspect soft hemar ketsot hatt he
targetmar ketcanbedef inedandt hecompanycanbeposi tionedi nor dert ogar nerits
shar eofsal es.
Compet itiv eAnal y sis
Thepur poseoft hecompet i
ti
v eanal y sisist odet ermi net hest rengt hsandweaknessesof
thecompet it
or swi thiny ourmar ket ,
st rat
egi est hatwi llprov i
dey ouwi t
hadi stinct
adv ant age, thebar r i
erst hatcanbedev el
opedi nor dert opr ev entcompet i
tionf rom
enter i
ngy ourmar ket ,andanyweaknessest hatcanbeexpl oi tedwi t
hi nt hepr oduct
dev elopmentcy cle.
Desi gn&Dev elopmentPl an
Thepur poseoft hedesi gnanddev elopmentpl ansect i
oni st opr ov i
dei nv est orswi t
ha
descr ipt i
onoft hepr oduct '
sdesi gn,char titsdev elopmentwi thint hecont extof
product ion, mar ket ingandt hecompanyi tself,andcr eat eadev elopmentbudgett hatwi ll
enabl et hecompanyt or eachi tsgoal s.
Oper at ions&ManagementPl an
Theoper ationsandmanagementpl anisdesi
gnedt odescr ibejusthowthebusi ness
functi
onsonacont inuingbasis.Theoperati
onspl anwillhighli
ghtthelogist
icsoft he
organizati
onsuchast hev ari
ousresponsibi
li
ti
esoft hemanagementt eam, thetasks
assignedt oeachdi vi
sionwithinthecompany ,andcapitalandexpenser equirement s
relat
edt otheoperationsoft hebusiness.
FinancialFactors
Financialdataisalwaysatt hebackoft hebusinessplan,butt hatdoesn'
tmeani t
'sany
l
essi mpor t
antthanup- fr
ontmat eri
alsuchast hebusinessconceptandt hemanagement
team.

Commoner r
or s
Productselection
Capaci t
yutil
izationesti
mates
Mar ketstudy
Technol ogystudy
Locationselection
Selecti
onofowner shipfor
ms

Det ermi ni ngBankabi li

tyoft hepr oject
Loansav ai l
abl ef orst ar
tingI ndust r
ialv enturei nIndia
Ther ear et womai nf inancial i
nst ituti
onsav ailableforloansforent r
epreneursont he
(feder al/al lIndi alev el).
1.Indust rialDev elopmentBankofI ndia( I
DBI )
2.Indust rialFi nanceCor porationofI ndi a(IFCI)
TheI ndust r
ial Dev elopmentBankofI ndiai stheheadi nstitut
ioninthear eaoflongt er
m
i
ndust rial fi
nance.I twasest ablishedundert heI DBIAct1964asawhol l
yowned
subsi diar yofRBIandst artedf unct ioningonJul y01,1964.
UnderPubl i
cFi nanci al I
nstituti
onsLaws( Amendment )Act1976, itwasdel i
nkedf r
om RBI
.
IDBIi sengagedi ndi rectfinancingoft hei ndustr i
alacti
vit
ies
Theobj ect i
vesoft heI ndust ri
al dev elopmentbankofI ndi
aar etocreateapr incipal
i
nst itutionf orl ongt ermf i
nance, tocoor dinatet heinsti
tut
ionswor kinginthisfieldfor
planneddev elopmentofi ndust rialsect or,topr ovidetechnicalandadmi nist
rativesupport
tothei ndust riesandt oconductr esear chanddev el
opmentact ivi
ti
esf orthebenef itof
i
ndust rial sect or.
Ont heSt atel ev elfi
nancei sav ai lableloanscanbeav ail
edf r
om
1.St ateFi nanci al Cor poration( SFC)
2.St ateI ndust rialDev el
opmentCor por ati
on( SIDC) .

Cr
it
eri
aforBusinessloans:
√Techni
calassessmentofpr oject
√Experi
enceoftheent r
epreneur s
√Fi
nancial&commer ci
alpractical
it
yoft
hepr
oject
√Conformit
ytoenv i
ronment allaws
√Economicv i
abi
li
tyofthepr oject

Howt
oappl
yforbusi
nessl
oansi
nIndi
a–Loanappl
icat
ionpr
ocedur
e

Thefi
rststepistosubmitadet
ail
edproj
ectr epor
t( busi
nessplan)
tothefi
nanci
al
i
nsti
tut
iontoIDBI,I
FCIoranyot
herfi
nanci
alinsti
tut
ionf r
om wherethel
oansanctioni
s
sought
.Incasealicensei
sarequi
rementfortheproject,t
heli
censeshouldbeprovi
ded
wit
htheprojectr
eport.

Thefi
nanci
alinst
it
uti
onaft
erscr
uti
nizi
ngtheprojectr
epor
t.I
fthef
inanci
ali
nst
it
uti
on
r
equir
esaddit
ionali
nformat
ionorcl
arif
icat
ions,
theyusual
l
yaskforthi
sinafewdaysof
r
ecei
ptofproj
ectreport
.
 Represent
at i
vefrom t
hef i
nanci
alinst
ituti
onwi l
larrangetoinspectthesi
teetctomake
cert
ainthesuitabi
li
tyoftheproj
ect.Atthisstagediscussionsonv ar
iousaspect
softhe
proj
ectarediscussedandf i
nalpr
ojectcostsar ecalculat
ed.

Thef
inanci
ali
nst
it
uti
ongi
vesi
tsappr
oval
ift
heyf
indt
hepr
ojectf
easi
ble.

Loanspr ovidedf orbusi nessventurescanbef orequi pmentandf i

xedassetsaswel las
wor ki
ngcapi tal.Whilet herei
snohar dandf astr ul
et hati
sr evealedbyfinancial
i
nst i
tuti
ons.Iwoul dsayt hati
fapr ojecti svi
abl eandt heentrepreneurhasappr oximatel
y
25%ofhi sownf unds.
Then75%canbef inanced.
Inaddi t
iont ot hisl
oanscanbeav ailedf orwor kingcapi t
al al
so.Incasey oucanpr ov i
de
proofofy ourexper ti
sei ntheprojectt hereisal way sthepossi bil
it
ythatyourloansmaybe
sanctionedwi thal esseramountofcashi nvestmentony ourpar t.
Projectscost ingupt oRupees5cr or escannor mal l
ybef inancedont hestatel ev
el.
Financial i
nstituti
onsf ollowguideli
nessuchasdebt -
equityratio,entr
epr
eneur ‟s
cont r
ibutiontot hepr ojectetcwhendeci di
ngonl oans.Itisnotuncommonf orapplicants
toinflatetheircont ri
but i
onsinanat temptt oinv esttheleastamountoft hei
rownf unds.

Bankabi l
ityofaPr oj ect
PeterSeegeroncesai d,“Educat i
oni swheny our eadt hef i
nepr int,butexper i
encei swhat
yougeti fy oudon’ t
.Af r i
caisnowr ecei v i
ngsomeat tent ionf rom t her estoft hewor ldasa
genui nedest inat i
onf orimpact ful inv est ment .Whi let her ear esi gnifi
cantst ruct ure
i
mbal ancesacr osst hecont inent ,ther ear enot i
ceabl ei mpr ov ement si ngov ernance,
deliveryofsoci al andbasi cser v i
ces, changei nat titudest owar dst ransf ormat i
onal
educat ion, andat okeni nvest menti ni nf rastr uctur e.Gonear et heday swheni nf l
ated
statisti
csonAf ri
cawer edr ivingt henar rativesoneconomi cgr owt h.
TheAf ri
canOut look2013Repor tpai nt sanopt i
mi sticpi ct ureoft hecont i
nent ’sgr owth
potent i
al –t heeconomyi spr oj ect edt ogr owby4. 8%i n2013andaccel erat ef urtherto
5.3%i n2014.Netcapi talinflowst oAf r
icaar epr oject edt or each$77. 5- bi
llioni n2015
from $48. 3- bi l
lioni n2012, andhousehol dspendi ngwi l
lbesuppor tedbyr isingi ncome,
i
ncr easedr emi ttancef l
ows, andst abl emacr oeconomi csenv ironment .Ami dstt hese
posi ti
vesi st heAf ricanent repr eneur ial renai ssancet hathast akenshape; thebi r
thofa
vibrantpr ivat esect ort hatischangi ngt hel andscapeofpol iti
cal gov er nance, and
redef i
ningt hepat hwayt oaccel erat i
ngeconomi cgr owt handi mpact ful dev elopment .In
ordert osust ainsuchauni queandencour agi ngt rend, Af ri
canent r
epr eneur smust
under standwhati tt akest oposi ti
v elyexpl oi ttheset rends.
Anemer gingeconomydependsonmanyf act orsf ori mpact ful growt h.Fact orssuchas
entrepreneur shi pandi nnov ationar ecent ral tot hedev elopmentpr ocessi nanemer ging
economy .Innov ationandent repr eneur shi par eal socar dinal topr omot i
nggr owt h,
i
ncr easingpr oduct ivit
y ,andcr eat ingj obs.
Bankabl epr oject sat t
ractf inanci er sandi nv est or s
Forent repr eneur st obet akenser iousl ybyi nv estor s, banks, f
inanci ngagenci es, andt heir
owngov ernment s,theywi llhav et opr esentconv inci ng“ Busi nessCases”bywayofa
“Bankabl ePr oject ”;inform byaf easi bi l
ityst udy ,andorabusi nesspl an.
Mostt i
mes, pr ojectowner sf ocusonl yont het echni cal aspect soft hepr ojecti nt heear l
y
stagesoft hebusi nessdev elopment , wi t
houtpr operpackagi ngoft hedeal orbusi ness
proposal .Whenonescanst hev ariouspl atfor msdedi cat edt ot hepr omot ionofAf ri
can
businesses, y ouwi llobser v eanencour aging, butwor risomet rend; busi nessest hatare
tryi
ngt or aisest art-uporgr owt hcapi tal wi t
houtappr opr iatedocument ationt osuppor t
thebusi nesscase.Manyoft hesepi tchesl ackt her equi si t
edocument st hatar er equired
forani nv est ort omakeadet er mi nat iononwhet hert hebusi nessi sav i
abl eandsui table
i
nv estmentopt iont hatdeser v est heirat tentionandr esour ces.
Abankabl ebusi nesscasewi l
l consi derscal e, mar ket ,prof it
ability,li
qui dity ,qual i
tyof
management ,cust omer s, technol ogy , andv alueaddedpr eposi tion.I fabusi nessi deai sa
“Greenf ield” ,new, theni nmosti nst ances, t
her ei saneedf oraf easi bi lityst udy .
Af easi bili
tyst udyi si ntendedt opr ov ideanov er viewoft hepr i
mar yi ssuesr elat edt oa
busi nesscase.Thei deai st oi dent i
fyany“ makeorbr eak”scenar iot hatcoul dpr ev entt he
prospect ivebusi nessf rom bei ngsuccessf ul .Inshor t, thef easi bi l
ityst udyi smeantt o
deter mi newhet hert hepr oposedbusi nessmakessense.Wi thacompl et edf easi bil
ity
study ,thebasi sf ort hepr epar at ionofani nf or medbusi nesspl ani sest abl ished.
At ypi cal feasi bilityst udywi l
l l
ookatpossi bleoppor tuni ti
es, andobst acl esr el at ingt othe
foll
owi ngi ssues:
Mar ket–whati st hemar ket ,doest hecompanysi tont opofabi gt r endi ni tspr ospect i
ve
mar ket ,ori st hemar ketl ar geenought osust aint heent ryofanewpl ay er ,howbi gi st he
i
ndust ryori dea?At hor oughmar ketr esear chanal y sisshoul dr ev eal basel inedemand,
demogr aphi cchar act erist icsoft hecust omer s, basel inesuppl y, compet i
tor s’ st rengt hand
weaknesses, andananal ysi sont hepr oposedl ocat ion.
Organi sat ion/ techni cal–i ssuesr elat i
ngt ot her i
ghtor gani zat ional str uct uremustbe
assessedandar ticul ated, whoar et hoser esponsi bl ef orgov ernanceandov er sight -the
ri
ghtmi xedofaboar dofdi rect or s, whatqual ifi
cat ionsar eneededf oroper at ingt he
busi ness, andananal ysi soft hechangi ngt rendofst af fi
ngandr et ent ion.Ont echnol ogy ,
theneedt odet er mi net het ypeoft echnol ogyt hati scor et ot hesur viv al oft hebusi ness,
howmat urei st hei nfor mat iont echnol ogyl andscapeoft hel ocat ionandhowwi lli
t
i
mpactt hebusi nessI Tst rat egy , isi tcostef fect ivet oi nt egr atesoci al medi anow, orl ater
,
andwi llitaf fectt hest ar t-upt imet omar ket .
Financi al-under st andi ngt hef inanci al needsofanexi stingbusi nessorst ar t-upi sof
par amounti mpor tancet osuccessf ul fundr aisi ng.Theneedt odet er mi neanddi st i
ngui sh
star t-upcostf rom oper at ingcostmustbemadeatt hei nitial stageoft hebusi ness.
Rev enuepr oject i
onmustber ealist icandi nt unewi tht hecur rentst at eoft heoper ating
env ironment ,sour cesoff i
nanci ngshoul dbei dent ifyandanal y sef orsui tabi li
t y, and
avai lability,andl ast lypr of itabi li
tyf or ecastandanal ysisshoul dbei nf or medwi thbasi c
breakev enanal y sis.
Whatnextaf tert hef easi bi l
ityst udy ?
Basedonaposi tiv er esul toft hef easi bilityst udy ;ift her ear ei ndi cat ionsoft hesound
busi nesspr oposal ,thenextcour seofact i
oni st odev elopa“ Busi nessPl an” .I ft he
busi nessi sanexi stingbusi ness, af easi bi l
ityst udymi ghtnotbeneeded.Abusi nesspl an
i
st hebr idgeofcommuni cat ionbet weeni nt erest edi nv est or sandt hepr omot erorowner
ofabusi ness.Thebusi nesspl ani nsummar ypr ov idesar oadmaponwher et hecompany
i
sheadi ng, howi ti ntendst oar r
ive, andhowi twi llappearuponar riv al.Fur ther mor e, a
busi nesspl ani sat ool ut i
lisebybusi nessowner st osetgoal sandobj ect ivesf ort he
busi nessper for mance, prov ideaf oundat ionf orev aluat i
on, anduset ocommuni cat et he
proposedcompanymessaget ost af f,di rect or s, l
ender s, andpot ent ial inv est or s.
Thef ol l
owi ngar et hebasi ct enet sofasoundbusi nesspl an:
Anexecut iv esummar y–gi vest her eaderorpot ent ial inv est or susef ul under st andi ngof
yourbusi nessmodel ori deai nsummar y .Itcoul denhanceorl imi ty ourchancest o
gett i
ngf unded
Pur pose–t hepur poseoft hepl ani fsi mpl eandt ot hepoi ntwi llat tracti nv est or s,and
summar i
zet heoper at i
onal int entt omanagi ngt hebusi ness.
Mar ketanal y sis-t hisi susual lygl eanedf rom t hef easi bili
tyst udyi fonewaspr epar ed
priort ot hepr epar at ionoft hebusi nesspl an.I ttriest ocapt ur eandanal y set he
char act er i
st icsoft het ar getmar ket ;demogr aphi candgeogr aphi c, andt estt hepr oduct s
andorser vicest obeof fer edi nsat isf yingmar ketneeds.
Company-anov erv i
ewoft hepr oposedcompany ;gov er nance, managementqual ifi
cat i
on
andexper i
ence, theneedsmanagementi nt endst osat isf y,andt hest rategyt obe
depl oy edi nof fer i
ngt hoseser v i
cesorpr oduct s.
Mar ket ingandsal esst rat egy-whati st hepr oposedcompanymar ket ing&sal esst rategy,
whatkeyi ndi cat orsf orsuccess, whoar ey ourcompet itor s, andhowcompet i
t i
v ei st he
env ironment .Pr oductorser v ices–whatar et heongoi ngef for tsi nt er msofpr oduct sor
ser viceof fer i
ng, ongoi ngef for tsregar dingpr oductdev el opmentandt imet omar ket,are
ther ekeymi lestonest obemet ?
Financi aldat a–Al ookatf undi ngr equi r
ement sandt heuseofgener atedf unds,
histor ical financi al summar y,andf orecast edsummar yoft hepr oposedcompany
fi
nanci al stat ement .
Thet ipspr ov idedabov ear eal soappl icablet ogov er nment -ownedcompani es.I n
gov er nment ,feasi bil
it
yst udiesar emor eappl icablet oi nfrastructurepr oject s, andt he
prov isionofser vices.Formanygov ernment -or ientedpr ojects,projectf i
nanci ngt hrough
“Publ icPr ivate-Par tnershi p”ar rangement s(BOT, BOM, BOOT, Concessi on, et c.)ar e
desi rabl e.Inmanypar tsofAf rica, t
her ear eal sochal lengeswheni tcomest of inancing
i
nf rast ruct urepr oj ects;suchasr oads, por t
s, prov i
sionofut i
li
ty( wat er,
power ,
telecommuni cation, etc. )
.Inmosti nst ances, pr oj
ectf inanci ngmi ghtnotr equi re
sov er eignguar ant ees.Thi st opi cwi llbeexpl or edinanot herar t
icle( TheI ntricaci esof
Proj ectFi nanci ngi nAf r
ica).Fornowt hepoi ntt obemadei st hei deaofpr esent ing
bankabl epr oj ects.
Thecav eat
Whati tist ruet hatsomebusi nessowner sorpr omot er shav ethet echni cal exper ti
set o
prepar et hei rownbusi nesspl an, itisnotadv i
sabl etodoso.Mosti nvestor sandor
l
ender swi l
l preferani ndependentpr epar er;someonewhoi sint hebusi nessof
dev elopi ngf easibi li
tyst udies, andbusi nesspl ans.Thei deai stol imitthei nf usionofbi as
i
nassumpt i
onsusedt opr epar et hebusi nesspl an.Ther ear emi sconcept ionsr egar ding
thecostoff easibi li
tyst udies,andt hel engt hoft i
met ocompl eti
on.Forot her s,thecosti s
notaf for dabl e,nomat terhowl owi tmi ghtbe.

ComponentsofaB- Plan
ComponentsofBusinessplan
Abusi
nessplanprovidesdir
ecti
on,
keepi
ngyouontrackandisusual
l
yarequi
rement
whenyouseekfinance.Dependi
ngonyourbusi
nesstype,
yourpl
ancoul
dincl
udethe
fol
l
owingsecti
ons:

Tit
lepage-Thi
sdescri
beswhatt
heplanisforandincl
udesgener
ali
nfor
mati
onony
our
busi
ness.Fi
ndoutmoreonwhattoincl
udeintheti
tl
epageofyourbusi
nesspl
an.

Busi
nessSummar
y-Aone-
pageov
erv
iewwr
it
tenaf
tery
ourbusi
nesspl
ani
sfi
nal
i
sed.

Aboutyourbusi
ness-Thisistypi
call
ycall
edthemanagementplanoroperat
ionspl
an.I
t
cover
sdetai
lsabouty
ourbusinessincl
udingst
ruct
ure,
regi
str
ati
ons,l
ocati
onand
premi
ses,st
aff
,andproduct
s/servi
ces.

Abouty ourmarket-Thisi
sthemar keti
ngplan.I
tshoul
doutl
ineyourmarketi
nganal
ysi
s
oft heindustr
yyouareenter
ing,yourcustomersandyourcompeti
tor
s.Thissect
ion
shouldal socoveryourkeymarketi
ngtargetsandyourst
rat
egi
esfordeli
veri
ngonthese
targets.

Aboutyourf
utur
e-Thissecti
oncover
syourpl
ansfort
hef
utur
eandcani
ncl
udeav
isi
on
st
atement,
busi
nessgoalsandkeybusi
nessmil
est
ones.

Aboutyourfinances-Thef i
nancialpl
anincludeshowyou'
l
lfi
nanceyourbusi
ness,
cost
ingandfinancialproj
ect
ions.SeetheFinancessect
ionf
ordetai
l
edinfor
mationon
whattoi
ncludeonf i
nances.

Support
ingdocumentati
on-Listal
lofy
ourattachmentsundert
hisheadinginyourpl
an
forr
efer
ral
.Forexample:copi
esofemergencyprocedur
es,maps,resumes,orf
inanci
al
tabl
es.