Article Assistant in SAG & Company
- What is the definition of MSME?
The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:
- MSMEs will now be called Micro units if they have investments upto Rs 1 crore and turnover of less than Rs 5 crore. The definition earlier was on investment criteria of up to Rs 10 lakh for Service MSMEs earlier and Rs 25 lakh or manufacturing.
- For an MSME to be defined as a Small unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of less than 50 crore. This applies to all MSMEs including the Service enterprises which earlier came under investment of up to Rs 2 crore.
- Enterprises with investments up to Rs 20 crore with a turnover of less than Rs 100 crore will now be called Medium Earlier, the investment limit for Medium units was up to Rs 10 crore and Service enterprises up to Rs 5 crore.
- What is the support available for collateral free borrowing?
The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the MSE sector without the need for collaterals/ third party guarantees. The main objective of the scheme is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of an MSE unit, which availed collateral- free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 per cent of the outstanding amount in default. The CGTMSE would provide cover for credit facility up to Rs. 100 lakh which have been extended by lending institutions without any collateral security and /or third party guarantees. A guarantee and annual service fee is charged by the CGTMSE to avail of the guarantee cover. Presently the guarantee fee and annual service charges are to be borne by the borrower.
- What is the support available for technology upgradation?
Ministry implements a scheme called Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small enterprises in the country. Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh (12 per cent prior to 29.09.2005 limited to maximum of Rs 4.8 lakh) is provided to the eligible MSEs for upgrading their technology with the well-established and improved technology as approved under the scheme. 48 products/sub-sectors have been approved under the CLCSS till date. If you are an MSE manufacturing a product and want to upgrade the technology of manufacturing the product with the well-established and improved technology as approved under the Scheme, then you may have to approach to the nodal agencies/eligible financial institution for sanction of term loan for purchase of eligible machinery.
- What is the support available for cluster development?
The Ministry is implementing the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) wherein support is provided for Diagnostic Study; Soft Interventions like general awareness, counseling, motivation and trust building, exposure visits, market development including exports, participation in seminars, workshops and training programmes on technology upgradation etc, Hard Interventions like setting up of Common Facility Centers (Common Production/Processing Centre, Design Centre, Testing Centre etc.) and creation/upgradation of infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.
- What is the support available for Skill Development?
The Ministry conducts various types of training Programme through its various organization’s for self-employment as well as wage employment. The training programmes are primarily focused to promote self-employment in the country. Thus all type of programmes have input which provide necessary information and skills to a trainee to enable him to establish his own micro or a small enterprises. The programmes include two week Entrepreneurship Development Programme (EDP), Six Week Entrepreneurship Skill Development Programme (ESDP). One weak Management Development Programme (MDP), One Day Industrial Motivation Campaign (IMC) etc. For Monitoring of the Programme a web based system has been developed where coordinator of the Programme is bound to feed all details of trainees including his photo and phone no. on the website. The same will be linked to the call center of Ministry where real time feedback is obtained from trainees.
- What benefits do the Tool Rooms of Ministry of MSME provide to MSMEs?
Tool Rooms are equipped with state-of-the-art machinery & equipment. They are engaged in designing and manufacturing of quality tools, which are necessary for producing quality products, and improve the competitiveness of MSMEs in national and international markets. They also conduct training programmes to provide skilled manpower to industries specially MSMEs. The placement of trainees trained in Tool Room is more than 90%. There are 18 Autonomous Bodies (10 MSME Tool Rooms and 8 Technology Development Centre’s) under DC (MSME).
- What support is provided by the Ministry for improving manufacturing competitiveness?
The National Manufacturing Competitiveness Programme (NMCP) is the nodal Programme of the Government to develop global competitiveness among Indian MSMEs. The Programme was initiated in 2007-08. This Programme targets at enhancing the entire value chain of the MSME sector through the following schemes:(a) Lean Manufacturing Competitiveness Scheme for MSMEs (b) Promotion of Information & Communication Tools (ICT) in MSME sector (c) Technology and Quality Upgradation Support to MSMEs (d) Design Clinics scheme for MSMEs (e) Enabling Manufacturing Sector to be Competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT) (f) Marketing Assistance and Technology Up gradation Scheme for MSMEs (g) Setting up of Mini Tool Room under PPP Mode (h) National campaign for building awareness on Intellectual Property Rights (IPR) (I) Support for Entrepreneurial and Managerial Development of SMEs through Incubators (j) Bar Code under Market Development Assistance (MDA) scheme.
- What support is provided by the Ministry to promote energy conservation in the manufacturing process for SMEs?
The Ministry implements the “Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises (TEQUP)” which focuses on two important aspects, namely, enhancing competitiveness of MSME sector through Energy Efficiency and Product Quality Certification. The basic objective of this scheme is to encourage MSMEs in adopting energy efficient technologies and to improve product quality of manufacturing in MSMEs. It is a well-known fact that energy consumption is a significant component in the cost structure of almost any manufacturing/ production activity. Adopting energy efficient technologies curtails the cost of energy there by reducing production cost and increasing competitiveness. Under this scheme, a capital subsidy of 25% of the project cost subject to a maximum of Rs. 10.00 lakh shall be provided to the registered MSME units. While 25% of the project cost will be provided as subsidy by the Government of India, the balance amount is to be funded through loan from SIDBI/banks/financial institutions. The minimum contribution as required by the funding agency will have to be made by the MSME unit.
- What support is provided by the Ministry to improve quality of products produced in MSME sector?
The TEQUP scheme envisages another activity, namely, Product Quality Certification. The main objective of this scheme is to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness. The primary objective of this activity is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National / International standardization Bodies. Under this Activity, MSME manufacturing units will be provided subsidy to the extent of 75% of the actual expenditure, towards licensing of product to National/International Standards. The maximum GOI assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing /Marking to National Standards and Rs. 2.0 lakh for obtaining product licensing /Marking to International standards. One MSME unit can apply only once under the scheme period.
- What support is provided by the Ministry to improve design of products produced in MSME sector?
The Ministry implements the Design Clinic Scheme for Design Expertise to Micro, Small and Medium Enterprises (MSME) Sector is to improve the design of the product to meet global challenges and compete with similar products domestically and internationally. It is launched to benefit MSMEs by creating a dynamic platform to provide expert solutions to real time Design problems and add value to existing products. The goal of this scheme is to help MSME manufacturing industries move up the value chain by switching the production mode from original equipment manufacturing to original design manufacturing and hence original brand manufacturing. In the Design Clinic scheme, the value additions to an idea or a concept are imparted through interaction at a lesser cost to a specific industry/sector. The expected outcome of such interventions is new product development by design improvement and value addition for existing products.
- What support is provided by the Ministry to adopt latest Quality Management Standards and Quality Technology Tools (QMS/QTT)?
Under the National Manufacturing Competitiveness Programme (NMCP) Scheme, one component is “Enabling MSME manufacturing sector to be competitive through Quality Management Standards/Quality Technology Tools (QMS/QTT)” was initiated in the XIth Five year plan. The main objective of the scheme is to sensitize and encourage MSEs to adopt latest Quality Management Standards/Quality Technology Tools (QMS/QTT) and to keep a watch on sectoral developments by undertaking the stated activities. The major activities under the Scheme are as a) Introduction of appropriate course modules for technical institutions
- b) Organizing awareness campaigns for micro & small enterprises.
- c) Organizing competition–watch (c-watch).
- d) Implementation of quality management standards and quality technology tools in selected micro & small enterprises.
- e) Monitoring international study missions.
- What support is provided by the Ministry for promotion of Information & Communication Tools (ICT) in MSME Sector?
The Ministry implements the Information and Communication Technology (ICT) scheme to encourage and assist Indian MSMEs to adopt ICT Tools and Applications in their production and business processes, and thereby improve their productivity and competitiveness in National and International Market.
- What support is provided by the Ministry for setting up Business Incubators?
The Ministry implements the Support for Entrepreneurial and Managerial Development of SME’s Through Incubators”. The main purpose of the scheme is to nurture innovative business ideas (new/indigenous technology, processes, products, procedures, etc), which could be commercialized in a year. Under the Scheme, financial assistance between 75%-85% of the project cost upto maximum of Rs. 8 lakh per idea/unit, provided to Business Incubators (BIs). The BIs are also eligible to avail Rs. 3.78 lakh for infrastructure and training expenses for incubating 10 ideas. Any individual or Micro and Small Industries (MSEs) that has innovative business idea at near commercialization stage can approach the Business Incubators approved under the scheme. Under the scheme, various institutions like Engineering Colleges, Management Institutions, Research labs, etc. that have in-house incubation facilities and faculty for providing handholding support to new idea/entrepreneur can apply in the prescribed application form.
- Whether there is any scheme for assisting MSMEs for Intellectual Property Rights?
Under the National Manufacturing Competitiveness Programme (NMCP) to enhance the competitiveness of the SMEs sector, DC (MSME) is implementing a scheme “Building Awareness on Intellectual Property Rights (IPR)” for the MSME. The objective of the scheme is to enhance awareness of MSME about Intellectual Property Rights (IPRs) to take measure for the protecting their ideas and business strategies. Accordingly, to enable the MSME sector to face the present challenges of liberalization, various activities on IPR are being implemented under this scheme.
- Is there support available for obtaining ISO certification?
The Ministry is implementing the Certification Reimbursement Scheme for Micro & Small Enterprises (MSEs) for reimbursement of certification expenses, only to those MSEs which have acquired Quality Management Systems (QMS) and /or Environment Management Systems (EMS) or Food Safety Systems (HACCP) Certification. Under the scheme provides reimbursement of 75% of the certification expenses up to a maximum of Rs.75,000/- (Rupees seventy five thousand only) to each unit as one-time reimbursement only to those MSEs which have acquired Quality Management Systems (QMS) or Environment Management Systems (EMS) and or Food Safety Systems (HACCP) Certification.
- What support is provided by the Ministry for enabling MSMEs to get credit rating?
The Ministry is implementing the Performance & Credit Rating Scheme, the main objective of the is to provide a trusted third party opinion on the capabilities and creditworthiness of the MSEs so as to create awareness amongst them about the strengths and weakness of their existing operations. This is to provide them an opportunity to improve and enhance their organizational strengths and credit worthiness, so that they can access credit at cheaper rates and on easy terms.NSIC was appointed as nodal agency to implement the scheme on behalf of the Government. Rating under the scheme is being carried out through empaneled rating agencies i.e. Credit Rating Information Services of India Limited (CRISIL), Credit Analysis & Research Limited (CARE), Onicra Credit Rating Agency of India Ltd. (ONICRA), Small and Medium Enterprises Rating Agency of India Ltd. (SMERA), ICRA limited and Brickwork India Ratings. Under this Scheme, rating fee payable by the micro and small enterprises is subsidized for the first year only and that is subject to maximum of 75% of the fee or Rs. 40000/-, whichever is less.
- What support is provided by the Ministry for assisting training institutions?
The Ministry is implementing the Assisting to Training Institutions Scheme which envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas, by providing training to first generation entrepreneurs and assisting them in setting up of enterprises. The assistance shall be provided to these training institutions in the form of capital grant for creation/strengthening of infrastructure and Programme support for conducting entrepreneurship development and skill development programmes.
- What support is provided by the Ministry for participation of MSMEs in international events?
Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines.
- What scheme does the Ministry have for providing marketing support to MSMEs?
The Ministry implements the Marketing Assistance scheme through National Small Industries Corporation (NSIC) Limited for providing marketing support to MSMEs. The main objectives of the scheme is to enhance the marketing competitiveness of MSMEs; to provide them a platform for interaction with the individual/institutional buyers to update them with prevalent market scenario and to provide them a form for redressing their problems. MSMEs are supported under the Scheme for capturing the new market opportunities through organizing/ participating in various domestic & international exhibitions/ trade fairs, Buyer-Seller meets intensive-campaigns and other marketing events.
- Does the Ministry have any scheme for providing handholding support and assistance to potential entrepreneurs?
The Ministry implements the Rajiv Gandhi Udyami Mitra Yojana (RGUMY), objective of which is to provide handholding support and assistance to the potential first generation entrepreneurs, who have already successfully completed Entrepreneurship Development / Skill Development Training. Selected lead agencies i.e. ‘Udyami Metra’s’, provide information and guidance to first generation entrepreneurs regarding various promotional schemes of the Government, procedural formalities required for setting up and running of the enterprises and help them in accessing Bank credit etc. A ‘Udyami Helpline’ (a Call Centre for MSMEs) with a toll free No. 1800-180-6763 has also been set up to assist the entrepreneurs.
- What is the status of lending by banks to this sector?
Bank’s lending to the Micro and Small enterprises engaged in the manufacture or production of goods specified in the first schedule to the Industries (Development and regulation) Act, 1951 and notified by the Government from time to time is reckoned for priority sector advances. However, bank loans up to Rs.5 crore per borrower / unit to Micro and Small Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006 are eligible to be reckoned for priority sector advances. Lending to Medium enterprises is not eligible to be included for the purpose of computation of priority sector lending.
- What is meant by Priority Sector Lending?
Priority sector lending include only those sectors, as part of the priority sector that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises
- Are there any targets prescribed for lending by banks to MSMEs?
As per extant policy, certain targets have been prescribed for banks for lending to the Micro and Small enterprise (MSE) sector. In terms of the recommendations of the Prime Minister’s Task Force on MSMEs banks have been advised to achieve a 20 per cent year-on-year growth in credit to micro and small enterprises, a 10 per cent annual growth in the number of micro enterprise accounts and 60% of total lending to MSE sector as on preceding March 31st to Micro enterprises. In order to ensure that sufficient credit is available to micro enterprises within the MSE sector, banks should ensure that:40 per cent of the total advances to MSE sector should go to micro (manufacturing) enterprises having investment in plant and machinery up to Rs. 10 lakh and micro (service) enterprises having investment in equipment up to Rs. 4 lakh, 20 % of the total advances to MSE sector should go to micro (manufacturing) enterprises with investment in plant and machinery above Rs. 10 lakh and up to Rs. 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 4 lakh and up to Rs. 10 lakh. Thus, 60 per cent of MSE advances should go to the micro enterprises
- Are there specialized bank branches for lending to the MSMEs?
Public sector banks have been advised to open at least one specialized branch in each district. The banks have been permitted to categorize their MSME general banking branches having 60% or more of their advances to MSME sector, as specialized MSME branches for providing better service to this sector as a whole. As per the policy package announced by the Government of India for stepping up credit to MSME sector, the public sector banks will ensure specialized MSME branches in identified clusters/centers with preponderance of small enterprises to enable the entrepreneurs to have easy access to the bank credit and to equip bank personnel to develop requisite expertise. Though their core competence will be utilized for extending finance and other services to MSME sector, they will have operational flexibility to extend finance/render other services to other sectors/borrowers.
- How do banks assess the working capital requirements of borrowers?
The banks have been advised by RBI to put in place loan policies governing extension of credit facilities for the MSE sector duly approved by their Board of Directors. Banks have, however, been advised to sanction limits after proper appraisal of the genuine working capital requirements of the borrowers keeping in mind their business cycle and short term credit requirement. As per Nayak Committee Report, working capital limits to SSI units is computed on the basis of minimum 20% of their estimated turnover up to credit limit of Rs.5crore.
- What is Cluster financing?
Cluster based approach to lending is intended to provide a full-service approach to cater to the diverse needs of the MSE sector which may be achieved through extending banking services to recognized MSE clusters. A cluster based approach may be more beneficial (a) in dealing with well-defined and recognized groups (b) availability of appropriate information for risk assessment (c) monitoring by the lending institutions and (d) reduction in costs. The banks have, therefore, been advised to treat it as a thrust area and increasingly adopt the same for SME financing. United Nations Industrial Development Organization (UNIDO) has identified 388 clusters spread over 21 states in various parts of the country. The Ministry of Micro, Small and Medium Enterprises has also approved a list of clusters under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and Micro and Small Enterprises Cluster Development Programme (MSE-CDP) located in 121 Minority Concentration Districts. Accordingly, banks have been advised to take appropriate measures to improve the credit flow to the identified clusters. Banks have also been advised that they should open more MSE focused branch offices at different MSE clusters which can also act as counseling. Centre’s for MSEs Each lead bank of the district may adopt at least one cluster.
- Why is credit rating of the micro small borrowers important?
With a view to facilitating credit flow to the MSME sector and enhancing the comfort-level of the lending institutions, the credit rating of MSME units done by reputed credit rating agencies and it should be encouraged
- Is credit rating mandatory for the MSE borrowers?
Credit rating is not mandatory but it is in the interest of the MSE borrowers to get their credit rating done as it would help in credit pricing that is cost of funds (interest and other charges etc.) of the loans taken by them from banks.
- What are the guidelines for delayed payment of dues to the MSE borrowers?
With the enactment of the Micro, Small and Medium Enterprises Development (MSMED), Act 2006, for the goods and services supplied by the MSEME units, payments have to be made by the buyers as under: The buyer is to make payment on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day. The agreement between seller and buyer shall not exceed more than 45 days. If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank. For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the interest as advised at above. In case of dispute with regard to any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council, constituted by the respective State Government. To take care of the payment obligations of large corporate borrowers to MSEs, banks have been advised that while sanctioning/renewing credit limits to their large corporate borrowers (i.e. borrowers enjoying working capital limits of Rs. 10 crore and above from the banking system), to fix separate sub-limits, within the overall limits, specifically for meeting payment obligations in respect of purchases from MSEs either on cash basis or on bill basis
- What is debt restructuring of advances?
A viable/potentially viable unit may apply for a debt restructuring if it shows early stage of stickiness. In such cases the banks may consider to reschedule the debt for repayment, consider additional funds etc. A debt restructuring mechanism for units in MSME sector has been formulated and advised to all commercial banks.
- What is the definition of a sick unit?
As per the extant guidelines, a Micro or Small Enterprise may be said to have become Sick, if· any of the borrower account of the enterprise remains NPA for three months or more. OR ·There is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year. This criterion enables banks to detect sickness at an early stage and facilitate corrective action for revival of the unit.
- Are all sick units put under rehabilitation by banks?
No. If a sick unit is found potentially viable it can be rehabilitated by the banks. The viability of the unit is decided by banks. A unit should be declared unviable only if such a status is evidenced by a viability study.
- Can the MSE borrowers get collateral free loans from banks?
Banks are mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the MSE sector. Further banks may, on the basis of good track record and financial position of MSE units, increase the limit of dispensation of collateral requirement for loans up to Rs.25 lakh with the approval of the appropriate authority.
- Is MSME updated to Udyog Aadhaar?
Yes, MSME registration has been replaced with the Udyog Aadhaar registration. If any micro, small and medium industries want to start any business; they need to get the registration with MSME/Udyog Aadhaar
- Is Aadhaar card compulsory?
Yes. For registration under the Udyog Aadhaar scheme, Aadhaar card is compulsory for a Sole Prop. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.
- Can existing and new businesses both apply?
Yes, an existing and new business can apply for MSME/Udyog Aadhaar registration. Provided the existing unit is functioning and meets the threshold limits for registration under MSME – Criteria for an MSME has been revised now – Check
- What is the validity of the certificate?
There is no expiry of the Udyog Aadhaar Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.
- Can trading companies (Who just buy and Sell) can register under MSME?
No. MSME covers only manufacturing and service industries. Trading companies are not covered by the scheme. MSME is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme.
- Do I need multiple registrations for manufacturing plants in different cities?
No. The MSME/Udyog Aadhaar certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.
- What are the activities specifically excluded from coverage under MSME?
Ministry of Micro, Small and Medium Enterprises (MSME) has clarified that the activities that would be specifically not included in the manufacturing or production of commodities or rendering of services as per Section 7 of the said Act.
- Forest and Logging
- Fishing and aquaculture
- Wholesale, retail trade and repair of motor vehicle and motorcycles
- Wholesale trade except for motor vehicles and motorcycles.
- Retail Trade except of Motor Vehicles and motor cycles.
- Activities of households as employees for domestic personnel.
- Undifferentiated goods and services producing activities of private households for own.
- Activities of extraterritorial organization’s and bodies.
- Aadhaar card
- Rent agreement
- Property paper
- Cancelled Cheque
- Company Registration i.e., Sale or Purchase Bill and PAN card
- Business Address Proof
- For self-owned premise:Lease deed, property tax receipt, possession letter, allotment letter, etc.
- For rented premise:NOC from the landlord, rent receipts, utility bills or document evidencing the landlord’s ownership, etc.
- Copies of Sale and Purchase Bills
- Partnership Deed
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Copies of Licenses and Bills of Machinery Purchased.
To get all the MSME benefits one has to get registered first and apply for a Udyog Aadhaar.
Benefits of MSME Registration (IN SHORT)
- MSME registration helps in getting government tenders.
- Under bank loan, 15% import subsidy on fully automatic machinery.
- Becomes easy to get licenses, approvals and registrations, irrespective of field of business.
- Compensation of ISO certificate expenditure.
- Helps in getting low interest rates.
- Registered MSMEs gets tariff subsidies and tax and capital subsidies.
- Gets exemption under Direct Tax Laws.
- Credit Facilities without Collateral (Schemes discussed below)
- Capital Subsidies for various manufacturing and service sector units
- Incentives for various manufacturing and service sector units
- 1 % Interest Reduction on Overdraft Loans and other loans
- Startup India Scheme for Innovative Companies – 3 out of 10 Years – No Income Tax to be paid – Allowed as Deduction – Companies upto 10 Years in Existence are still considered Startup – This is Free
- Generator Subsidy
- Concessions on Electricity Bills
- Subsidy on Patent Registration and few Trademarks
- ISO Certification Charges Reimbursement
- MDA Scheme for Registration for Bar Coding
- Special Incentives for Companies Manufacturing COVID-19 Products like – Covid Testing Kits, Sanitizers (Alcohol Based), Ventilators, PPE Kits, 3Ply Surgical Masks, KN95 Masks/ N95 Masks, Hospital Mattresses & Pillows, Multipara Monitors, Medical Oxygen
- Allows credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- There are many government tenders which are only open to the MSME Industries
- Business registered under MSME are given higher preference for government license and certification.
- Support if you are starting an Incubation Center.
- Incentives for Employment Generation
- FOR PAYMENT RECOVERY BEYOND 45 DAYS FROM CLIENTS/BUYER
(Apply if you are facing issue with Non Payment on MSME SAMADHAAN Portal – Government will help in recovering the amount outstanding)
VARIOUS SCHEMES BY CENTRE
CREDIT AND FINANCIAL ASSISTANCE SCHEME
- Prime Minister’s Employment Generation Programme (PMEGP)
- Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
INFRASTRUCTURE SUPPORT TO MSME’S
- Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
- MSE Cluster Development Programme (MSE-CDP)
TECHNOLOGY UPGRADATION AND COMPETITIVENESS SCHEME FOR MSMSE’S
- Design Clinic Scheme
- Lean Manufacturing Competitiveness Scheme (LMCS)
- Digital MSME Scheme
- Financial Support to MSMEs in ZED Certification Scheme
- Support for Entrepreneurial and Managerial Development of MSMEs through Incubators
- Tool Rooms & MSME Technology Centre’s