Key Schemes and Policies for enabling MSME Growth

Key Schemes and Policies for enabling MSME Growth

Key Schemes and Policies for enabling MSME Growth

APEX CLUSTER DEVELOPMENT SERVICES

1. Subsidized Credit for Technology Upgradation (CLCSS)

2. Technology & Quality Upgradation Support (TEQUP)

3. Enhancing Quality Management Standards and Quality Technology Tools (QMS/QTT)

4. Enhancing Lean Manufacturing Competitiveness (LMCS)

5. ISO Certification Reimbursement


1. Public Procurement Policies2. Market Development Assistance (MDA)3. Building Design Expertise (Design clinic scheme)4. Marketing Assistance & Technology Up-gradation5. Financial Assistance on Bar-Code6. Building Awareness on IPR7. Support for International Exposure and

Participation in International Events8. Support for conducting Surveys,

Studies and Policy Research

1. Cluster Development (MSE-CDP)

2. Setting up Mini Tool Rooms & Training Centers (MTR)

3. Support for entrepreneurial & managerial development through incubators

4. Scheme for 'National Awards’

1. Credit Guarantee Fund Scheme for Collateral free credit

2. Performance and Credit Rating -Reimbursement

MARKETING SUPPORT

1.1 Support through Public Procurement Policies

1.2 Market Development Assistance (MDA)

1.3 Building Design expertise (Design clinic scheme)

1.4 Marketing Assistance and Technology Up-gradation Support

1.5 Financial Assistance on Bar-Code

1.6 Support for Building Awareness on IPR

1.7 Support for International Exposure and Participation in International Events

1.8 Support for conducting Surveys, Studies and Policy Research

1.1

Support through Public Procurement Policies

OVERVIEW


The Public Procurement

Policy for MSEs Order 2012

aims at facilitating

promotion & development

of micro and small

enterprises.

Features

Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012

states that the Central Government Ministries, Departments and Public Sector

Undertakings shall procure minimum of 20 per cent of their annual value of

goods or services from Micro and Small Enterprises.

Remarks

Special provisions for MSEs owned by SCs or STs: 4% out of 20% shall be

earmarked for procurement from MSEs owned by SC or ST entrepreneurs.

In event of failure of such MSEs to participate in tender process or meet tender

requirements and L1 price, this 4% sub-target for procurement shall be met

from other MSEs.

1.2

Scheme for 'Market Development Assistance (MDA) to MSMEs’

The scheme offers funding

support of to-and-fro air

fare for participation of

MSME Entrepreneurs in

overseas fairs/ trade

delegations. The scheme

also provides funding for

producing/ acquiring bar

coding and for contesting

anti-dumping cases.

Who Can Apply• Individual MSMEs

• Associations.

RemarksThe third component of the scheme is already covered under NMCP schemes

namely “Financial assistance for bar coding and Marketing Assistance and

Technology Up-gradation of MSMEs”APEX CLUSTER DEVELOPMENT

SERVICES

1.2

Scheme for 'Market Development Assistance (MDA) to MSMEs’


1. Copy of the valid SSI registration issued by concerned GM (DIC)/ Director of Industries

2. Demand Draft in favor of PAO (MSME), New Delhi for 50% rental charges of the booked space.

3. Details of one or two participating representatives of the unit with photo copy of their valid passport.

4. Proof of ownership of the unit as SC/ ST/ Women.

How To Apply (Participation in International Trade Fairs/ Exhibitions)

1.3

Scheme for 'Building Design expertise of MSMEs Manufacturing sector (Design clinic scheme)’

The objective of the

scheme is to enhance the

competitiveness of MSMEs

through design and hence

spread awareness on

importance of design and

its learning. For this

propose, funding is

provided for conducting

awareness programs &

projects on design.

Who Can Apply

MSMEs or Group of MSMEs as prime applicants

Expert agencies for conducting seminars and workshops

Academic institutes, design consultants etc as co-applicants along with a

designated MSME (prime applicant)

Individual (e.g. design students) as co-applicants in collaboration with the

academic institution and MSME (prime applicant)

Remarks The scheme is mainly carried out and supervised by NID through its design centers. APEX CLUSTER DEVELOPMENT

SERVICES

1.3

Scheme for 'Building Design expertise of MSMEs Manufacturing sector (Design clinic scheme)’


1. Copy of Financial Statements

2. CV of each consultant

3. Copy of consultant's proposal and additional information if necessary

4. Relevant documents, such as quotation, project brief, or contract

5. Declarations (in prescribed formats)

How To Apply (Design Projects)

DOCUMENTS’ CHECKLIST

Marketing Assistance & Technology Up-gradation8 Scheme Components

1.4

Scheme for 'Marketing Assistance and Technology Up-gradation of MSMEs‘

Marketing Assistance and

Technology Upgradation

scheme is a GoI initiative

for adoption of Modern

Marketing techniques by

MSMEs consistent with the

requirement of global

market. The scheme is

divided into eight

subcomponents and GoI

assistance is available in

various proportions.


Who Can Apply Competent agency, MSMEs, Industry associations, NGOs.

Remarks

Most of the components of the scheme are based on RFP/EOI hence the

eligibility criteria and application procedure are specified in the EOI. A Screening-

cum-Steering Committee (SSC) is constituted to monitor the scheme.

1. Attested copy of all pages of E.M. No. Certificate

2. Certificate (in original) confirming MSME/SSI & functional status of the unit at the time of acquiring ISO 18000/ISO 22000/ISO 27000 Certificate, with CA Certificate of total investment

3. Attested copy of the ISO 18000/ISO 22000 /ISO 27000 Certificate

4. CA certificate of expenditure (in original) giving the details of expenditure incurred in acquiring ISO 18000/ISO 22000 /ISO 27000 Certificate

5. CA certificate of expenditure (in original) giving the details of reimbursement/grant/subsidy Certificate (excluding hotel & travel expenses & surveillance charges)

6. Pre-receipt


1.4

Scheme for 'Marketing Assistance and Technology Up-gradation of MSMEs‘

How To Apply (Reimbursement of ISO 18000 / ISO 22000 / ISO 27000 certification)

DOCUMENTS’ CHECKLIST

Who Can Apply All MSEs with Entrepreneurial Memorandum (EM) Part-II registration

Remarks Direct application can be made by MSEs to the Director of Micro, Small & Medium

Enterprises-Development Institute of their region in prescribed application form.

1.5

Scheme for 'Providing Financial Assistance on Bar-Code’

This aims at enhancing

marketing competitiveness

of MSMEs. Through

seminars & reimbursement

of registration fees, MSEs

are encouraged to use bar-

codes. The work of

reimbursement has been

decentralized & transferred

to MSME-DIs to ensure

speedy and extensive

implementation.

OVERVIEW


1.5

Scheme for 'Providing Financial Assistance on Bar-Code’

1. Attested copy of Cash Receipt for amount paid to GS1 India

2. Attested copy of license recd

3. Pre- receipted bill in triplicate for amount to be reimbursed

4. Copy of EM Part-II acknowledgement no. from State Directorate of Industries/ DICs duly attested

5. Certificate from GM, DIC/DI OR Affidavit from MSE confirming status of enterprise as micro /small & functional status of the unit, with CA Certificate of total investment

6. An undertaking concerning non receipt of similar financial assistance from any other organization and/or from O/o the DC(MSME)

How To ApplyReimbursement of registration fee for Bar coding


1.6

Scheme for 'Building Awareness on Intellectual Property Rights' (IPR) for MSMEs

The scheme aims at

sensitizing and enhancing

awareness about IPR in

MSMEs. For this purpose,

activities like awareness

programs, skill

development training, grant

of patent - trademark etc

are conducted.

OVERVIEW


Building Awareness on IPR

Who Can

Apply

MSMEs, MSME organizations like Industry Associations, societies, Cooperatives,

Firms, Trusts, NGOs, institutions & universities with track record of assisting MSMEs

Competent Agencies, Expert Agencies

Quasi-Government or Government Aided Bodies

Private Units Provided it is Sponsored by MSME Industry Associations

RemarksSome components are RFP based, so procedure & eligibility criteria are mentioned in

RFP. A Steering Committee is constituted to ensure proper functioning of scheme.

Awareness/ sensitization

programme on IPR

Pilot Studies for Selected Clusters/

Groups of Industries

Interactive Seminars/

Workshops

Specialized Training

(Short / Long term)

Financial Assistance on grant of patent &

registration under GI

Assistance for setting up of IP Facilitation Centre for MSME

Interaction with International

Agencies

1. Certified copy of Registration Certificate

2. Certified copy of Memorandum & Articles of Association, if applicable.

3. Certified copy of Audited Statement of Accounts for the last 2 years.

4. Annual Report for the last 2 years.

5. Details of Expenditure — Document giving an undertaking to properly conduct the Programme

How To Apply•Awareness/ sensitization programme on IPR

•Pilot Studies•Interactive Seminars/ Workshops


1.6


1. Reimbursement details

2. Product brochures

3. Number of producers in case of GI

4. Annual Report for the last 2 years (in case of firm /company)

5. Copy of the registration of the applicant industries/ producers/ entrepreneur

6. Copy of the proof for grant of patent/ registration of GI by the competent authority

How To ApplyFinancial Assistance on grant of patent & registration under GI


1.6


1. Certified copy of Registration or equivalent Certificate

2. Certified copy of Memorandum Articles of Association or Rules/Regulations etc, if applicable

3. Certified copy of Audited statement of accounts for last 2 years, if applicable.

4. Annual Report for last 2 years, if applicable.

5. Document giving an undertaking to properly conduct the programme

How To ApplyIP Facilitation Centre


1.6


1.7

Scheme for International Cooperation

The principal objectives of

assistance under this

Scheme are Technology

infusion and upgradation of

Indian MSMEs, their

modernization &

promotion of their exports.


Who Can

Apply

Events under the Scheme can be organized by:

State/Central Government Organizations;

Industry/Enterprise Associations; and

Registered Societies/Trusts & Organizations associated with the MSME.

Remarks

Applicant organization should be suitably registered with primary objective of

promotion & development of MSME and must be engaged in such activities for at

least last 3 years. Events for which financial support is sought must have significant

international participation.

Grants under the Scheme will normally be released on re-imbursement basis, after

the event is over, on submission of the following re-imbursement claim.

Who Can Apply

Empanelled Expert / Academic / Research / Professional Organizations/ Institutions;

and Associations/ Federations of MSME

Remarks

A Steering Committee is constituted to monitor the scheme. The scheme is based on

RFP; hence the application procedure & prescribed forms for detailed proposals for

the assignment are specified in the ‘Letter of Invitation’ (LOI) sent to selected

institutions.

1.8

Scheme of Surveys, Studies and Policy Research

This scheme aims to

regularly collect and

analyze data on the

constraints / challenges /

opportunities available to

MSME. The results will be

used for policy research

and for designing

appropriate strategies of

Government intervention

to assist these enterprises.

OVERVIEW


1. Attach documents as per RFPHow To Apply

Conducting surveys, analytical studies and policy research


1.8

Scheme of Surveys, Studies and Policy Research

Enabling Technology Upgradation, Process Improvements and Quality Certification

2.1 Subsidized Credit for Technology Upgradation (CLCSS)

2.2 Technology and Quality Upgradation (TEQUP)

2.3 Enhancing competitiveness through Quality Management Standards/ Quality Technology Tools

(QMS/QTT)

2.4 Enhancing competitiveness through Lean Manufacturing Techniques

2.5 ISO Certification Reimbursement

Who Can Apply Micro and small Enterprises

RemarksThe financial support under the scheme is provided by the banks and financial

institutions hence the MSMEs need to contact banks and lending institutions for the

assistance.

2.1

Credit Linked Capital Subsidy Scheme for Technology Upgradation

The scheme aims at

facilitating Technology

Upgradation of Micro and

Small Enterprises by

providing 15% capital

subsidy on institutional

finance availed by them for

induction of well

established and improved

technology in approved

sub-sectors/products.

OVERVIEW


1. Attested copy E. M. No., Registration Certificate

2. Other documents as required for loan application

How To ApplySubsidy for credit and loan


2.1

Credit Linked Capital Subsidy Scheme for Technology Upgradation

Who Can Apply

Expert organizations like PCRA, BEE, TERI, IITs, NITs, etc,

State Govt. agencies like MITCON, GEDA, etc,

Cluster/Industry based associations of MSMEs,

NGOs and Technical Institutions

RemarksMost of the components of the scheme are based on RFP/EOI hence the eligibility

criteria and application procedure are specified in the EOI. A Scheme Steering

Committee (SSC) is constituted to monitor the scheme.

2.2

Scheme for 'Technology and Quality Up-gradation (TEQUP) Support to MSMEs‘

The scheme advocates the

use of energy efficient

technologies in

manufacturing units so as

to reduce cost of

production and adopt clean

development mechanism.

OVERVIEW


1. Attested copy E. M. No.

2. Registration Certificate

3. Certificate to be attached by belonging SC/ST category (if applicable)

4. Copy of DPR

How To ApplyImplementation of Energy Efficient Technologies (EET)


2.2


1. Certified copy of Registration or equivalent Certificate.

2. Certified copy of Memorandum Articles of Association or Rules/Regulations etc., if applicable.

3. Certified copy of Audited statement of accounts for the last two years, if applicable.

4. Annual Report for the last 2 years, if applicable

How To ApplyEstablishment of 16 CCA and Popularizing CDM


2.2


1. Attested Copy of EM/DIC Registration No.

2. Affidavit (in original) as per Annexure-II; with CA Certificate of investment in Plant and Machinery as per Annexure-III.

3. Attested Copy of Product Certification License

4. CA Certificate of the details of the Expenses of acquiring

5. Product Certificate supported by attested copies of Receipts.

6. Undertaking/Declaration of the Incentive/grant/subsidy already received, if any

7. Pre-receipt in Triplicate

8. Certificate for SC/ST category

How To ApplyProduct certification/ licenses from National/ International bodies


2.2


Who Can Apply

Expert organizations like QCI, NRBPT, Consultancy Development Corporation, NPC,

Standardization Testing & Quality Certification (STQC), IIQM, Industry Associations that

have taken active interest in QMS/ QTT, Technical Institutions, Engineering Colleges,

Tool rooms and similar bodies etc, MSEs

Remarks A Monitoring & Advisory Committee is constituted for proper functioning of the

scheme. Final selection of clusters/ MSEs is done by the Committee.

2.4

Scheme for Enabling manufacturing sector to be competitive through Quality Management Standards (QMS) & Quality technology tools (QTT)

OVERVIEW



scheme is to sensitize and

encourage MSEs to

understand and adopt the

latest Quality Management

Standards (QMS) and

Quality Technology Tools

(QTT). Various activities are

conducted in this regard

under the scheme and

funding support is provided

accordingly.

2.5

Scheme for 'Lean Manufacturing Competitiveness of Micro Small and Medium Enterprises (LMCS)’

Who Can Apply

Interested industry associations

Group of approx. 10 MSME units which qualify under MSME-Development Act,

2006 and form an SPV (Mini Cluster)

RemarksThe application under the scheme can be made directly to the National Productivity

Council, the approval is given in two steps, first is in-principal approval and final

approval is given once the criteria of in-principal approval are fulfilled.


scheme is to enhance the

manufacturing

competitiveness of MSMEs

through the application of

various Lean Manufacturing

(LM) Techniques.

OVERVIEW


1. Attested copy E. M. No. of each unit

2. Memorandum of Agreement

3. Power of Attorney

How To Applyimplementation of Lean Manufacturing Techniques


2.5

Scheme for 'Lean Manufacturing Competitiveness of Micro Small and Medium Enterprises (LMCS)’

Who Can Apply

Permanent Registered Small Scale/Ancillary/Tiny/Small Scale Service Business

Enterprises

Remarks This scheme is already covered as one of the components of Scheme on “'Marketing

Assistance and Technology Up-gradation of MSMEs”

2.6

ISO 9000/ISO 14001 Certification Reimbursement Scheme

The Scheme envisages

reimbursement of charges

of acquiring ISO-9000/ISO-

14001/HACCP certifications

to the extent of 75% of the

expenditure subject to a

maximum of Rs. 75,000/- in

each case.

OVERVIEW


1. Attested copy E. M. No.

2. Letter/Affidavit (in original) confirming SSI status and functional status of the unit at the time of acquiring ISO-9000/14001/HACCP

3. Copy of ISO-9000/ ISO- 14001/HACCP Certificate duly attested

4. CA certificate of the details of the Expenses incurred by the unit in acquiring ISO-9000/ISO-14001/HACCP Certificate; supported by copies of Receipts duly attested

5. Undertaking/Declaration of Incentive/ grant/ subsidy already received

6. Pre-receipt in Triplicate on Company’s Letter head with company’s Rubber Stamp and affixed with Revenue Stamp

7. Certificate to be attached by belonging SC/ST category (if applicable)

How To Apply


2.6

ISO 9000/ISO 14001 Certification Reimbursement Scheme

Access to Finance

3.1 Credit Guarantee Fund Scheme for Collateral-free Credit

3.2 Performance and Credit Rating Reimbursement

Who Can Apply Micro and Small enterprises

RemarksThe credit is provided under the scheme to the lending institutions, for collateral

security or third party guarantee, the MSEs seeking for loans can contact these

lending institutions.

3.1

Credit Guarantee Fund Scheme for Micro and Small Enterprises

The Credit Guarantee Fund

Scheme for Micro and Small

Enterprises (CGMSE) was

launched by the

Government of India to

make available collateral-

free credit to the micro and

small enterprise sector.

OVERVIEW


1. Attested copy E. M. No., Registration Certificate

2. Other documents as required for loan application

How To ApplyCollateral-free credit


3.1

Credit Guarantee Fund Scheme for Micro and Small Enterprises

Who Can Apply Small-Scale Units

Remarks

NSIC is the nodal agency for implementing the scheme through its various

branches/offices located in the country. The unit’s rating shall be a combination of

performance and credit worthiness of the unit. The SSI rating methodology shall

cover a combination of credit and performance factors including parameters

measuring operational, financial, business and management risks.

The Rating Agencies shall be empanelled by NSIC Head Office, for implementing the

Scheme. The Small Scale Unit shall be at liberty to select any of the rating agencies

empanelled under the rating scheme with NSIC. The application can be submitted in

duplicate to any of the offices/branches of NSIC or directly to the Rating Agency

selected by the SSI.

3.2

Performance and Credit Rating Scheme for Small Industries

The objective of this

Scheme is to encourage SSI

sector in increasing their

productivity, enhance their

acceptability in the market

and make access to credit

quicker and cheaper. This

would also infuse a sense of

confidence amongst the

buyers for taking a decision

on the options of sourcing

material from SSIs.

OVERVIEW


1. SSI Registration Certificate

2. Partnership Deed / Memorandum & Article of Association

3. Authority letter to sign the application.

4. List of all partners / directors with age, address, Net worth/ Income Tax Return, qualifications and experience

5. Copy of audited accounts for last 3 years

6. In case of new project/expansion, copy of project report containing a brief project profile, cost of project, source/means of finance

7. Brief write-up about the products manufactured, end users, marketing tie-up and orders in hand

8. Details of subsidy, tax concession

9. Quality certificates, export awards won, membership of any associations.

How To Apply Reimbursement of 75% of Rating Fee of Rating Agency


3.2

Performance and Credit Rating Scheme for Small Industries

Facilitating Common Infrastructure, Entrepreneurship and Recognition

4.1 Cluster Development (MSE-CDP)

4.2 Setting up Mini Tool Room & Training Centres

4.3 Support for entrepreneurial and managerial development through Incubators

4.4 Scheme for 'National Awards‘

Who Can Apply

National and international institutions engaged in development of the MSME

sector, or any other institution/agency approved by the Ministry of MSME

Remarks A steering committee is constituted to monitor the scheme The proposals under the

scheme will be considered for approval by the Steering committee of the MSE-CDP.

4.1

Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

The scheme supports the

sustainability and growth of

MSEs by addressing

common issues, capacity

building of MSEs by

providing skill development

training and enhancing

infrastructure in clusters.

OVERVIEW


Application for CFC

1. Copy of DSR

2. DPR, if prepared

3. Details for SPV formation

How To ApplyDSR; DPR; Soft Intervention; CFC


4.1

Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

Who Can Apply

Individual enterprises

Consortium of enterprises

Industry Association

Enterprise(s)/ Industry Association jointly with the State Government

RemarksThe scheme is based on RFP and most of the eligibility criteria and procedure is

specified in the RFP itself. The scheme is implemented under Public, Private

Partnership mode and a part of fund is provided by the government.

4.2

Scheme for 'Setting up Mini Tool Room & Training Centres under PPP Mode’


scheme is to improve the

competitiveness of the

MSMEs engaged in

manufacturing activities, to

bridge the gap between

demand and supply of

manpower and to

encourage research and

development activities.

OVERVIEW


4.3

Scheme for 'Support for entrepreneurial & managerial development of SMEs through incubators‘

Who Can Apply

Any individual or MSME having innovative idea near commercialization can apply to

the host institution (e.g. IITs, NITs, Technical Colleges, Research institutes etc). The

host Institutions can apply to office of Development Commissioner– MSME (DC-

MSME) or their nearest DIs for funding support.

Remarks

The scheme is based on Request for proposal (RFP)/Expression of Interest (EOI)

and application can be made once an RFP is released. The scheme is carried out

under Public Private Partnership (PPP) mode. To ensure the participation of the

entrepreneurs in a PPP mode, it has been proposed that 15% and 25% of the

project cost will be borne by MSMEs wherever applicable.


scheme is to provide early

stage funding for nurturing

innovative business ideas

(new indigenous

technology, processes,

products, procedure etc.)

which could be

commercialized in a year.

Financial assistance is

provided for setting up of

business incubators.

OVERVIEW


1. Company Registration Documents, if applicable

2. Business plan in your own format

3. Any other required supporting document as per plan

How To Applysetting up of ‘Business Incubators (BI)’


4.3

Scheme for 'Support for entrepreneurial & managerial development of SMEs through Incubators‘

Who Can Apply All MSMEs with EM registration

Remarks Applications will be invited through advertisement in the leading newspapers . A

certificate and a trophy are provided along with cash prize under various categories.

4.4

Scheme for 'National Awards'

The objective of the award

is to recognize the

achievements of successful

entrepreneurs in MSMEs

under various categories. It

is given every year.

OVERVIEW


Types of Awards

Outstanding efforts in Entrepreneurship in MSMEs

Form X

Research & Development Efforts in MSMEs

Form Z

Quality Products in MSEs in each selected product Groups

Form Y

National award Entrepreneurship Service

Form X

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Questions?

Key Schemes and Policies for enabling MSME Growth

Documents

gradationfinancial assistance

public procurement policies1

msmesthe scheme

small enterprises mses

international exposure

policy research1

international eventssupport

international events1