Incentives Available To

MSME
(Micro, Small & Medium
Enterprise)

PREPARED BY-:
ANKIT GUPTA (1151663907)
NITIN SINGH

SERVICES RENDERED BY DEVELOPMENT

COMMISSIONER (MSME)

1.Advising the Government in policy formulation for the

promotion
and development of MSMEs.
2.Providing techno-economic and managerial consultancy,
common facilities and extension services to MSMEs.
3.Providing facilities for technology upgradation,
modernisation, quality improvement and infrastructure.
4.Developing Human Resources through training and skill
upgradation.
5.Providing economic information services.
6.Maintaining a close liaison with the Central Ministries,
Planning Commission, State Governments, Financial
Institutions and other Organisations concerned with
development of MSMEs.
7.Evolving and coordinating Policies and Programmes for
development of MSMEs as ancillaries to large industries.

NATIONAL MANUFACTURING COMPETITIVENESS

PROGRAMME (NMCP) SCHEME

MARKETING SUPPORT/ASSISTANCE TO MSMES (BAR CODE)

SUPPORT FOR ENTREPRENEURIAL AND MANAGERIAL DEVELOPMENT
(INCUBATORS)
ENABLING MANUFACTURING SECTOR TO BE COMPETITIVE THROUGH
QUALITY MANAGEMENT STANDARD & QUALITY TECH. TOOLS
(QMS/QTT)
NATIONAL CAMPAIGN FOR INVESTMENT IN INTELLECTUAL PROPERTY
RIGHTS
MINI TOOL ROOMS PROPOSED TO BE SET UP BY MINISTRY OF MSME
(MTR)
NATIONAL PROGRAMME ON APPLICATION ON LEAN MANUFACTURING
PROMOTION ICT IN INDIAN MANUFACTURING SECTOR
ENERGY EFFICIENCY AND QUALITY CERTIFICATION SUPPORT
DESIGN CLINIC SCHEMES FOR DESIGN EXPERTISE TO
MANUFACTURING SECTOR
MARKETING ASSISTANCE/SMES AND TECHNOLOGY UPGRADATION
ACTIVITIES

Small Industry Cluster Development Programme

(SICDP)

Clusters are defined as sectoral and geographical

concentration of micro, small & medium enterprises with
interconnected production system leading to firm/unit level
specialisation and developing local suppliers of material inputs
and human resources.

The Cluster Development Programme (CDP) earlier consisted of

assistance mainly in soft areas which encompasses activities
like general awareness and trust building, counseling, training
and capacity building, exposure visits, credit facilitation,
market developments etc. It was felt that the hard
component, which is directed towards assisting technology
improvements, quality standardization and testing mainly in
the form of Common Facility Centres (CFCs) equipped with a
variety of hardware and facilities which individual cluster units
cannot afford but are necessary for technology upgradation,
ensuring quality standards, need to be suitably incorporated as
one of the important component of the CDP.

SCHEME FOR CAPACITY BUILDING

A reliable database is a key input to policy decision-making process. This is

more so for the micro and small enterprise (MSE) in view of its large size and
wide disparity among the enterprises within the sector. The Office of the DC
(MSME) conducts periodic census for strengthening/updating the database
on MSE sector. So far, this office has conducted three censuses in the year
1971-72, 1992-93 and 2002-03. However, the limiting factor is the long gap
between two censuses and the high cost involved in conducting census.
This Scheme will be of great help to the Associations in playing positive role
in the development of MSEs in the country and articulating their views on
different aspects related to MSEs. To strengthen their role and increase their
efficiency, financial assistance for the secretarial and advisory/extension
services to selected national Associations are to be provided annually up to a
maximum of Rs.5 lakh per Association depending upon the size and reach of
the Association. Under the Scheme, the beneficiary Associations will be
required to provide the regular manpower at their own cost and office space
and also make an equivalent/ matching contribution towards cost of
modernisation of their facilities and equipment and training of their
personnel.

CREDIT LINKED CAPITAL SUBSIDY SCHEME

FOR TECHNOLOGY UPGRADATION

There is insufficient investment and lack of awareness of

both the quality standards and access to modern
technologies, a large percentage of SSI units continue with
outdated technology and plant & machinery. With increasing
competition due to liberalisation of the economy, the survival
and growth of the SSI units are critically dependent on their
modernisation and technological upgradation.

The Scheme aims at facilitating technology upgradation by

providing upfront capital subsidy to SSI units, including tiny,
khadi, village and coir industrial units, on credit availed of by
them for modernisation of their production equipment (plant
and machinery) and techniques. The Scheme provided for 15
per cent capital subsidy to SSI units, including tiny units, on
credit availed of by them for induction of well established
and improved technology in selected sub-sectors/products
approved under the Scheme. The eligible amount of subsidy
calculated under the scheme was based on the actual loan
amount not exceeding Rs.1 crore.

CREDIT GUARANTEE FUND SCHEME

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. Both the
existing and the new enterprises are eligible to be covered under the
scheme. The Ministry of Micro, Small and Medium Enterprises and
Small Industries Development Bank of India (SIDBI), established a
Trust named Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) to implement the Credit Guarantee Fund
Scheme for Micro and Small Enterprises. The scheme was formally
launched on August 30, 2000 and is operational with effect from 1st
January 2000.

The lending institutions, which are eligible under the scheme, are
scheduled commercial banks (Public Sector Banks/Private Sector
Banks/ Foreign Banks) and select Regional Rural Banks (which have
been classified under Sustainable Viable category by NABARD).

The credit facilities which are eligible to be covered under the scheme
are both term loans and working capital facility up to Rs.50 lakh per
borrowing unit, extended without any collateral security or third party
guarantee, to a new or existing micro and small enterprise.

ISO 9000/ISO 14001 CERTIFICATION

REIMBURSEMENT SCHEME

To enhance the competitive strength of the small scale

sector, the Government introduced an incentive scheme for
their technological upgradation/quality improvement and
environment management. The scheme provided incentive
to those small scale/ ancillary undertaking who have
acquired ISO 9000/ISO 14001 certifications.

The Scheme is applicable to those SSI/ancillary/ Tiny/ SSSBE

units who have already acquired ISO-9000/ISO-14001
certification.

The Scheme envisaged reimbursement of charges of

acquiring ISO-9000/ISO-14001 certifications to the extent of
75% of the expenditure subject to a maximum of Rs.
75,000/- in each case. The Scheme was valid upto 31st
March'2007.

PARTICIPATION IN THE INTERNATIONAL

EXHIBITIONS/FAIRS

Office of the Development Commissioner (Micro, Small

and Medium Enterprises) is participating in some of the
selected International Exhibitions/ Fairs abroad. It is
purely promotional scheme to give exposure to the
products of small & Micro manufacturing enterprises,
which otherwise are not in a position to participate in
the international trade fairs /exhibitions at their own
cost.
Under the scheme, exhibits of the selected exportworthy Micro & small enterprises are displayed in the
exhibition that provides an opportunity to Micro & Small
Enterprises (MSE) in demonstrating their capabilities
before the international community.
On an average, this Office has been participating in 810 number of International trade Fairs Exhibitions
abroad every year and 100 MSEs have been benefiting.

FINANCIAL ASSISTANCE FOR USING GLOBAL

STANDARDS (GS1) IN BARCODING

Bar Coding is a series of parallel vertical lines (bars and

space), that can be read by bar code scanners. It is used
worldwide as part of product packages, as price tags,
carton labels, on invoices even in credit card bills.This
enables timely and accurate capture of product
information. This would result in wide ranging benefits
including lowering of inventory costs, lower overall
supply chain costs and hence reduced costs for Indian
products, increasing efficiency of Indian industry.

DC (MSME), Ministry of Micro, Small and Medium

Enterprises, Govt. of India has notified an attractive
financial assistance scheme for registered Micro and
Small manufacturing enterprise. As per the scheme
Micro and Small manufacturing enterprise, who have
adopted bar code on or after 1st January, 2001 are now
eligible to get the financial assistance 75% (upto
Rs.18,750/-) of the one time registration fee paid to GS1
India.

PURCHASE AND PRICE PREFERENCE POLICY

Assistance under Government Stores Purchase

Programme in the form of reservation of products for
exclusive purchase from small scale sector and price
preference is one of the major instruments for providing
marketing support to the small scale industries.

The Director General of Supplies and Disposals, the

Central Purchasing Organisation of Government of India
provides a number of facilities to small scale industries
under its Government Stores Purchase Programmes.

These include reservation of certain products for

exclusive purchase from the small scale sector and price
preference upto 15% in case of selected items.

It is clarified that policy of the Price Preference of 15%

is a critical benefit available to the SSI sector. The
benefit is available to compensate them on account of
non-availability of economies of scale, poor resource
base, poor access to raw- material etc.

INTEGRATED INFRASTRUCTURAL DEVELOPMENT

(IID) SCHEME

The Integrated Infrastructural Development (IID)

Scheme was launched in 1994. The Scheme covers
districts which are not covered under the Growth
Centres Scheme. The aim of the IID Scheme is to provide
developed sites with infrastructural facilities like power
distribution network, water, telecommunication,
drainage and pollution control facilities, roads, banks,
raw materials, storage and marketing outlets, common
service facilities and technological back up services etc.

The Scheme also provides for

upgradation/strengthening of the infrastructural
facilities in the existing old industrial estates.

a.

b.

MINI
TOOL
ROOM
& TRAINING
SCHEME
In order
to meet
the growing
demand ofCENTRE
Tools and dies
in the

country, particularly in the SSI sector, Govt. of India have

decided to assist the State Govts. to set up Mini Tool Room and
Training Centres. A typical such centre can be set up at an
estimated cost of around Rs. 15 crores (including Rs. 10 crores
towards cost of machinery/equipment). However, the cost may
vary depending upon the activities proposed to be undertaken.
The Central assistance will be in the form of one time grant-in-aid
equal to 90% of the cost of machinery/equipment (restricted to
Rs. 9.00 crores in each case) in the case of a new Mini Tool
Room, and 75% of the cost of machinery/equipment (restricted to
Rs. 7.50 crores) in case of an existing Mini Tool Room to be
upgraded/modernised. The balance cost of
machinery/equipment, the cost of land and buildings and the
recurring costs would be met by the States/State Agencies.
The objectives of the Mini Tool Room & Training Centres would
beTo manufacture Jigs, fixtures cutting tools, gauges, press tools,
plastic moulds, forging dies, pressure casting dies and other
toolings for Small Scale Industries. Advanced tool making
process using CAD/CAM techniques are to be adopted.
To provide training facility in tool manufacturing and tool design
to generate a work force of skilled workers, supervisors,
engineers/designers etc.