What are MSMEs?
The Government of India has introduced MSME or Micro, Small, and Medium Enterprises in agreement with the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006.
MSMEs were redefined on 13th May 2020 as :
(i) a micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;
(iii) a medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Schemes :
Prime Minister Employment Generation Programme and Other Credit Support Schemes
1. Prime Minister Employment Generation Programme (PMEGP)
This scheme is focused towards employment generation and loans provided under this scheme are for Green field Projects.
Maximum cost of the project under this scheme for :
⦁ Manufacturing Sector – INR 25 Lakhs
⦁ Service Sector – INR 10 Lakhs
Subsidy provided
Subsidy Provided :
⦁ General Category – Urban Area – 15%
Rural Area – 25%
⦁ Special Category (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)
Urban Area – 25%
Rural Area – 35%
The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
How to apply : https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
2. Credit Guarantee Trust Fund For Micro and Small Enterprises (CGT SME)
Under this scheme , a collateral free loan is provided to both existing and new enterprises up to a limit of INR 100 lakh , on payment of guarantee fee to the bank by MSE.
Note : This scheme is limited to Micro and Small Enterprises.
Who can apply : Existing and New Enterprises.
How to apply : http://www.dcmsme.gov.in/schemes/sccrguarn.htm
3. Marketing Support/Assistance to MSMEs ( Bar Code )
Under this scheme the Ministry conducts seminars and reimburses registration fees for bar coding in order to encourage MSEs to use bar-codes. Financial assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA) and 75% of annual recurring fee for first three years (Under NMCP) paid by MSEs to GS1 India for the use of bar coding.
Who can apply : MSEs with GS1 India Registration for use of barcode.
How to apply : http://www.dcmsme.gov.in/
Technology Upgradation and Quality Certification
1. Financial Support to MSMEs in ZED Certification Scheme
Motive of this scheme is to inculcate Zero Defect & Zero Effect practices in manufacturing processes. Motivating the MSMEs for assessment of their enterprise for ZED Certification , so that they can increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc.
The subsidy provided here would be :
⦁ Micro Enterprises – 80%
⦁ Small Enterprises – 60%
⦁ Medium Enterprises – 50%
Who can apply : All Manufacturing MSMEs having Udyog Adhar Memorandum.
How to apply : http://www.zed.org.in/
2. Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
This Scheme provides 15% Subsidy for additional investment up to 1 crore for technology upgradation by MSEs.
Who can apply : Any MSE unit
How to apply : http://www.dcmsme.gov.in/schemes/credit_link_scheme.html
3. Marketing Support/Assistance to MSMEs ( Bar Code )
Under this scheme the Ministry conducts seminars and reimburses registration fees for bar coding in order to encourage MSEs to use bar-codes. Financial assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA) and 75% of annual recurring fee for first three years (Under NMCP) paid by MSEs to GS1 India for the use of bar coding.
Who can apply : MSEs with GS1 India Registration for use of barcode.
How to apply : http://www.dcmsme.gov.in/
4. Lean Manufacturing Competitiveness for MSMEs
Financial assistance is provided for implementation of lean manufacturing techniques, primarily the cost of lean manufacturing consultant – 80% by GOI and 20% by Beneficiary.
Who can apply : The scheme is open to all manufacturing MSEs. The units are required to form MC, ideally of 10 units each with a minimum 6, by signing among themselves a Memorandum of Understanding and MoU to participate in the scheme.
How to apply : http://www.dcmsme.gov.in/schemes/lean-manufact.htm
5. Design Clinic for Design Expertise to MSMEs
This scheme provides Funding support of :
⦁ ₹60,000 per seminar and 75% subject to a maximum of ₹3.75 lakhs per workshop
⦁ To facilitate MSMEs to develop new Design strategies and or design related products and services through project interventions and consultancy.
⦁ Government of India contribution @ 75% for micro, 60% for SMEs for the project range ₹15 lakh to ₹40 lakh.
Who can apply : Expert Agencies , MSMEs , Academic Institutions along with designated MSME.
How to apply : http://www.dcmsme.gov.in/schemes/DesignClinic.htm
6. Entrepreneurial and Managerial Development of SMEs through Incubators
This scheme provides early stage funding to innovative business ideas for setting up business incubators.
Funding for BI : The cost of each Incubator varies from 4 to 8 lakhs , overall limit for each BI is 62.5 Lakh , Upgradation of Infrastructure – 2.5 Lakh , Orientation/training – 1.28 lakh , Administrative expenses – 0.22 lakh
Total assistance per BI – 66.50 Lakh.
Who can apply : Any MSME with innovative ideas.
How to apply : http://www.dcmsme.gov.in/schemes/supportforemdti.html
7. Enabling Manufacturing Sector to be Competitive through QMS QTT
The scheme focuses on MSME adopting latest Quality Management Standards and Quality Technology Tools.
⦁ Funding support up to Rs 79,000/- per programme for conducting QMS/QTT awareness campaign for MSEs through expert organisations.
⦁ Funding support up to Rs 2.5 lakh per unit for implementation of QMS andQTT in selected MSMEs through expert organisations.
⦁ Funding support for conducting C-watch study for products having threat from foreign goods.
How to apply : www.dcmsme.gov.in/schemes/QmsQtt.htm
8. Building Awareness on Intellectual Property Rights
The purpose of the scheme is to enhance awareness among the MSMEs about Intellectual Property Rights, to take measures for protecting their ideas and business strategies.Government would provide the following assistance :
⦁ Conducting Awareness programmes on IPR – 1 lakh per programme
⦁ Conducting pilot studies for selected clusters/groups of industries – 2.5 lakh per study.
⦁ Funding support for conducting interactive seminars / workshops,specialised training on IPR.
How to apply : www.dcmsme.gov.in/schemes/IPRDetail.html
Marketing Promotion Schemes
1. International Cooperation Scheme
This scheme provides MSMEs an opportunity to :
⦁ Visit international exhibitions , conferences – for exploring new areas of technology infusion/upgradation, joint ventures, improving market of MSMEs products, etc.
⦁ Holding international conferences/summits/workshops/seminars relating to the MSME sector to be organized in India by the Industry Associations/ Government organizations.
The scheme provides financial assistance on reimbursement basis for airfare, space rent, freight charges, advertisement & publicity charges and entry/registration fee on reimbursement basis in case of participation in international exhibitions/trade fairs.
Who can apply : Government Institutions and Registered Industry Associations associated with promotion and development of MSME sector.
How to apply : Applications/pro2. Marketing Assistance Scheme
This Scheme provides :
Organisation of exhibitions abroad and participation in international exhibitions/ trade fairs.Co-sponsoring of exhibitions organised by other organisations/industry associations/ agencies , Organising buyer-seller meets, intensive campaigns and marketing promotion activities.
⦁ Maximum Budgetary support – International exhibitions/trade fairs – 30 Lakhs per event
⦁ Maximum Budgetary support – Organising Domestic Exhibitions – 45 Lakhs per event.
Who can apply : MSMEs, Industry Associations and other organisations related to the MSME sector are eligible to apply.
posals seeking assistance under the scheme should be submitted to the Branch Manager of the nearest office of the National Small Industries Corporation, with full details and justification in support of the application.
Entrepreneurship and Skill development Programme
1. Entrepreneurship Skill Development Programme ( ESDP )
Entrepreneurship Development Programmes are being organized regularly to nurture the talent of youth , These EDPs are generally conducted in ITIs , Polytechnics and other technical institutions, where skill is available to motivate them towards self-employment.
20% of total targets of ESDPs – weaker section – 500 stipend per month per candidate.
2. Assistance to Training Institutions (ATI)
The assistance is provided to National level training institutions operating under the Ministry of MSME, namely, NIMSME, KVIC, Coir Board, Tool Rooms, NSIC & MGIRI for strengthening of infrastructure and support for entrepreneurship and skill development. Scale of maximum assistance to the State level EDIs will be restricted to Rs.2.5 crore in each case. Assistance for skill development programmes will be provided as per the prescribed rates.
Infrastructure Development Programme
MICRO AND SMALL ENTERPRISES CLUSTER DEVELOPMENT ( MSE-CDP
This Scheme supports financial assistance for establishment of Common Facility Centres (CFCs) for testing, training centres, R&D etc. and to upgrade infrastructural facilities in industrial clusters.
⦁ Setting up of CFCs – maximum eligible cost of 15 crore – ( 70% contribution by GOI )
⦁ Infrastructural Developments – maximum eligible cost of 10 crore – ( 60% contribution of GOI )
Who can apply : Clusters , Industrial associations.
How to apply : https://cluster.dcmsme.gov.in
-By S. Chidambaram
