8 Government Initiatives for MSME
We have all heard that government is taking various initiatives for MSME in India but most of us unaware of the details and therefore are unable to take the benefits of the same. We will discuss here some of the recent schemes and benefits that the government has offered for the MSMEs in India.
Who are MSMEs?
First of all, one needs to know whether his business is covered under the definition of MSME. As per the ministry of Micro, Small and Medium enterprises Below is the criteria to decide the MSME status of any entity:
Classification |
Micro |
Small |
Medium |
|
Manufacturing Enterprises and Enterprises rendering Services |
Investment in Plant & Machinery or Equipment: and Annual Turnover; not more than Rs. 5 crores
|
Investment in Plant and Machinery or Equipment: and Annual Turnover; not more than Rs. 50 crores |
Investment in Plant and Machinery or Equipment: and Annual Turnover; not more than Rs. 250 crores |
So, if your business is covered under the above criteria, then you are into the MSMEs of India and can avail all the benefits extended by government for the MSMEs.
Government has introduced in recent years many schemes which we will try to unearth with this blog. You can also visit www.investindia.gov.in/schemes-msmes-india to know in details about every scheme.
8 Government Initiatives for MSME
1) Prime Minister Employment Generation Programme (PMEGP)
Objective: To provide financial assistance to self-employment ventures, in order to generate employment opportunities for unemployed youth and traditional artisans.
Key Benefits:
- Bank-financed subsidy scheme for setting up microenterprises in the non-farm sector.
- Margin money subsidy on bank loans of 15% to 35% for manufacturing projects of up to INR 25 lakhs, and service projects up to INR 10 lakhs.
- For special category beneficiaries such as SC/ST/Ex-Servicemen/NER/Women/PH/Minorities, the money subsidy margin is 25% in urban areas and 35% in rural areas. The limit for the maximum project cost is INR 10 lakhs in the service sector and INR 25 lakhs in the manufacturing sector
Criteria:
- Individuals above the age of 18 can apply for this MSME's scheme.
- Other beneficiaries can be Institutions registered under Societies, Self Help Groups, Charitable Trusts and Production Co-operative Societies.
To apply for this scheme, visit link
https://www.kviconline.gov.in/pmegpeportal/pmegphome/
2) 2nd Loan for Up-Gradation of the Existing PMEGP/MUDRA Units
Objective: To provide existing units with upgradation assistance regarding expansion, whereas financial assistance to the well set-up performing units. Furthermore, the scheme will also facilitate entrepreneurs towards automations and new technology modernization in the present unit.
Key Benefits:
- Maximum subsidy allowance would be 15% of the total project cost (and 20% for Hill States and NER). The financing banks will provide the term loans as the balance amounts of the total project cost.
Criteria:
- Current and well accomplished PMEGP/MUDRA units.
To apply for this scheme, visit link
https://www.kviconline.gov.in/pmegpeportal/pmegphome/
3) Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)
Objective: To motivate first generation entrepreneurs towards self-employment by providing credit guarantee funding for third-party guarantee-free / collateral free loans.
Key Benefits:
- Guarantee on credits for loans up to INR 2 crores, without third-party guarantee and collateral.
- Guarantee on coverages range from 75% (others) to 85% (Micro Enterprise up to INR 5 lakh).
- 50% of the coverage is for retail activity.
Criteria:
- Current Entrepreneurs and Aspirant Entrepreneurs.
Apply for CGTMSE Scheme:
Through Member Lending Institutions (Banks and NBFCs).
4) Credit Linked Capital Subsidy Component (CLCS & TU Scheme)
Objective:To facilitate technology upgradation in MSEs with state-of-the-art technology, with or without expansion and also for new MSEs schemes which have set up their facilities by providing an upfront capital subsidy of 15 per cent (on institutional finance of up to INR 1 crore availed by them).
Key Benefits:
- Induction of established and improved technologies.
- 15% Subsidy on institutional credit up to INR 1 crore with a subsidy cap of INR 15 lakh.
Criteria:
- Current Entrepreneurs and Aspirant Entrepreneurs.
Apply for CLCS & TU scheme:
Through Prime lending Institution / Nodal Banks.
5) Procurement and Marketing Support (PMS) Scheme
Objective: To develop the marketability of services and products in the MSME sector. Promoting access initiatives and awareness about various marketing relevant topics. Creating awareness regarding e-marketing, GeM portal, GST and other related topics etc.
Key Benefits:
- Involvement of Individual MSEs in domestic Exhibition/ Trade Fair.
- Developing capacity of MSMEs in Development of Marketing Haats/ Modern Packaging Technique.
- Organizing events like Domestic Trade Fair & Exhibition/ Awareness programs/ National & International Workshops & Seminars/ Vendor Development Programs.
Criteria:
- Existing Entrepreneurs
Apply for PMS Scheme using below link:
https://my.msme.gov.in/mymsme/reg/COM_Matu.aspx
6) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Objective: To establish the traditional artisans and industries into clusters in order to support them towards competitive for long- term sustainability goals.
Key Benefits:
- Enabling traditional artisans to deliver sustainable employment.
- Government of India support up to INR 5 cr. for more than 500 artisans and INR 2.5 cr. up to 500 artisans.
- Enabling in setting up physical infrastructure with CFCs, training, latest machines, etc. in clusters.
Criteria:
- Present artisans from traditional industries
Apply for SFURTI scheme using below link:
https://sfurti.msme.gov.in/SFURTI/Home.aspx
7) A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)?
Objective: To set up a network of incubation and technology centres to promote innovation and entrepreneurship to strengthen the competitiveness of MSME sector.
Key Benefits:
- Setting up Technology Business Incubators (TBIs) and Livelihood Business Incubators (LBIs) to skill youths for own incubation and enterprises.
- Maximum INR 1 cr. to Government agencies and maximum INR 50 Lakh to private agencies for procuring plant and machinery.
- Maximum INR 1 cr. given to new TBIs and maximum INR 30 Lakh to existing TBIs for procurement of plants and machinery.
Criteria:
-
For TBIs-
- New TBIs can be set up by Industry Associations Academic Institutions, R&D labs, Universities, Govt. entities and Technology Parks
- National/ Regional institutions of Govt. of India/ State Govt.
- Existing Incubation Centres under Ministries/ Departments of Govt. of India
-
For LBIs-
- Any Private Institution under PPP mode with any agency of Govt. of India/State Govt.
- Any agency/institution of Govt. of India/ State Govt.
Apply for this scheme using below link:
https://aspire.msme.gov.in/ASPIRE/AFHome.aspx
8) Digital MSME?
Objective: To promote Information and Communication Technology (ICT) in the MSME sector through adaptation of the ICT tools in their business and production processes. The scheme also aims at creating awareness about e-platforms and promoting digital marketing in MSME sectors.
Key Benefits:
- To empower MSMEs by digitally enhancing their performance towards higher competitiveness with high efficiency and low cost.
Criteria:
- Existing Entrepreneurs
Apply for this scheme using below link:
https://my.msme.gov.in/MyMsme/Reg/COM_DigitalMsme.htm
Apart from the above ones there are many other schemes also released by government to help MSME sector which can be explored via government’s official website or contact Expertbells, Our team of professional experts helps you to get benefited from MSME schemes.