Schemes from MSME Ministry 1. CLCS – TU : Scheme for Credit Linked Capital Subsidy for Technology Upgradation : Capital subsidy support on credit for technology Upgradation Description a. The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques. b. MSMEs can get a capital subsidy (~15%) on credit availed for technology up gradation, maximum u to 100 lakhs c. around 47 listed product manufacturing industries are considered under this scheme Who can apply? 1. Banks and financial institutions can apply to DC-MSME for availing support. 2. MSMEs need to directly contact the respective banks for getting credit and capital subsidy. Nodal Agencies SIDBI and NABARD How to apply? Contact the respective banks/financial institutions. Banks are: SBI, Canara Bank, Bank of Baroda, Punjab national Bank, Bank of India, Andra Bank, State Bank of Bikaner & Jaipur, Tamil Nadu Industrial Investment Corporation, The National Small Industries Corporation. 2. CGMSE : Credit Guarantee Scheme for Micro and Small Enterprises -Provision of collateral free credit for MSMEs Description a. Both the existing and the new enterprises are eligible b. The term loans and working capital facility up to Rs.100 lakh per borrowing unit, extended without any collateral security or third party guarantee, to a new or existing micro and small enterprise. c. Banks and financial institutions are provided funding assistance under this scheme so that they can in turn lend collateral free credit to MSMEs d. The Guarantee cover under the scheme is for the agreed tenure of the term loan/composite credit. In case of working capital, the guarantee cover is of 5 years or block of 5 years e. The fee payable under the scheme is one-time guarantee fee of 1.5% and annual service fee of 0.75% on the credit facilities sanctioned. For loans up to Rs.5 lakh, the one-time guarantee fee and annual service fee is 1% and 0.5% respectively. Further, for loans in the North-East Region, the one-time guarantee fee is only 0.75%. Nature of assistance Funding support to banks and financial institutions for lending collateral-free credit to MSMEs. Who can apply? Banks and financial institutions can apply to office of DC-MSME/MSME-DIs. for availing support. MSMEs need to directly contact the respective banks for getting credit. How to apply? Directly contact the respective banks/financial institutions - 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). National Small Industries Corporation Ltd. (NSIC), North Eastern Development Finance Corporation Ltd. (NEDFi) and SIDBI have also been made eligible institutions. 3. ESDP : Scheme for Entrepreneurship Skill Development Program : Entrepreneur Skill Development Programme Description Participation in The training program will be conducted by the MSME – DI nodal branches, The complete training calendar for each MSME-DIs shall be uploaded in the website of each MSME-DIs in the beginning of the year The four kind of training programmes conducted by MSME-DIs include Motivation Campaigns, Entrepreneurship Development Programmes, Entrepreneurship Skill Development Programme, Management Development Programmes, which cover diverse skill set need of new and existing entrepreneurs. Indiviaulas and MSME’s can apply for the programme Training Programs 1. Industrial Motivation Campaigns (IMCs) : Industrial Motivation Campaigns are organized to identify and motivate traditional / non-traditional entrepreneurs having potential for setting up MSEs so as to lead them towards self-employment. It is one day program without fee. 2. Entrepreneurship Development Programmes (EDPs) : Entrepreneurship Development Programmes are being organized to nurture the talent of youth by enlightening them on various aspects of industrial activity required for setting up MSEs. These EDPs are generally conducted in ITIs, Polytechnics and other technical institutions, where skill is available to motivate them towards selfemployment. Fees : Rs. 100/ candidate , 2 weeks course 3. Entrepreneurship Skill Development Programme (ESDPs) Comprehensive training programmes are organized to upgrade skills of prospective entrepreneurs, existing workforce and also develop skills of new workers and technicians of 9 MSEs by organising various technical cum skill development training programmes with the basic objective of providing training for their skill up gradation and to equip them with better and improved technological skills of production. 6 weeks course with fees of Rs.200/ per candidate 4. Management Development Programmes (MDPs) To improve their decision-making capabilities resulting in higher productivity and profitability of existing & potential entrepreneurs and developing new enterprises. Inputs on a variety of topics of managerial functions are provided to the participants by experts, which aims at dissemination of knowledge of scientific/modern management techniques /practices. 1 week course with Rs.400 / candidate 4. Scheme for Marketing Assistance and Technology up-gradation of MSME’s – an NMCP Scheme : Enable participation of MSMEs in state/district level trade fairs and provide funding support A. Enable participation of MSMEs in state/district level trade fairs and provide funding support Description Provide marketing platform to manufacturing MSMEs through enabling their participation in State/District level exhibitions being organized by State/District Authorities/Associations Nature of assistance 1. Free registration for participating in trade fairs. 2. Reimbursement of 50% of to and fro actual fare by shortest distance/direct train (limited to AC II tier class) from the nearest railway station/bus fare to the place of exhibition and 50% space rental charges for MSMEs (General category entrepreneurs). 3. For Women/SC/ST Entrepreneurs & Entrepreneurs from North Eastern Region Govt. of India will reimburse 80% of items. Note: The total reimbursement will be max. Rs. 30,000/- per unit for the SC /ST/ Women/ Physically Handicapped entrepreneurs, while for the other units the max. limit will be Rs. 20,000/- per person per MSME unit. B. Description Funding support for conducting trade competition studies The support program aims to conduct studies is to identify sectors in which the products are threatened by international competition due to issues related to marketing/branding strategies Nature Assistance of Funding support (INR 10 Lakh) for conducting analytical studies for competent agencies. 5. Scheme for Lean Manufacturing Competitiveness of Micro, Small and Medium Enterprises (LMCS) – An NMCP Scheme: Funding support for implementing ‘Lean Manufacturing’ projects. Description 1. To enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques - Lean Manufacturing is a set of techniques, which have evolved over a long period and are based on various minor to major breakthroughs that help in reducing cost and hence increase productivity. A main LM techniques are 5S System, Visual Control, Standard Operating Procedures (SOPs), Just in Time (JIT), KANBAN System, Cellular Layout, Value Stream Mapping, Poka Yoke or Mistake Proofing, Single Minutes Exchange of Dies or Quick Changeover (SMED), TPM (Total Productive Maintenance), Kaizen Blitz or Rapid Improvement Process: 2. Financial assistance for implementing pilot projects. 3. A maximum of 80% of the project cost for each cluster will be borne by the Government Who can apply? 1. Interested industry associations. 2. Group of approx. 10 MSME units which qualify under MSME-Development Act, 2006 and form an SPV (Mini Cluster). 6. Scheme for Building Design Expertise of MSME’s ( Design Clinic Scheme) an NMCP Scheme: Funding support for implementing ‘Design’ projects Description The support program aims to enable MSMEs develop new design strategies, get consultancy support from design experts and implement ‘Design’ projects. The expected outcome of such interventions are new product development or discernible design improvement and value addition for existing products. Funding 1. The funding support will be given by way of a grant upto a maximum of 60% of the total approved project cost or Rs. 9.0 Lakh, whichever is less, in case of a individual MSME or a group of not more than three MSME applicants. 2. The funding support will be given by way of a grant upto a maximum of 60% of the total approved project cost or Rs. 15 Lakh, whichever is less, in case of a group of four or more MSME applicants. 3. The applicant MSME (s) in the project is required to contribute at least 40% of the approved project cost as a matching fund. Nodal Agency The National Institute of Design (NID), Ahmedabad Who can apply? 1. MSMEs or Group of MSMEs as prime applicants. 2. Others (academic institutes, design consultants) as co-applicants along with a designated MSME (prime applicant) 3. Individual (e.g. design students) as co-applicants in collaboration with the academic institution and MSME (prime applicant) Note: It is necessary for an MSME (prime applicant) to apply along with a design consultant as a co-applicant. 7. Scheme for Technology and Quality Upgradation ( TEQUP) support to MSME’s , an NMCP Scheme 1. Funding for organizing awareness programs on Energy Efficiency Description Energy efficiency workshops will be conducted in MSME clusters. The primary objective of this Activity is to handhold the MSME clusters in adopting energy efficient processes. The awareness programme will normally be of one day duration with the participation of at least 30 MSMEs. Who can apply? Expert organizations like PCRA, BEE,TERI, IITs, NITs etc. or State Govt. agencies like MITCON, GEDA etc., and the autonomous bodies of Central/State Govt are eligible to apply for funding support. 2. Funding support for conducting energy audits, preparation of audit reports and detailed project reports (DPRs) Description The support program aims to handhold the MSME clusters in adopting energy efficient processes, conducting energy audits and preparing related reports (audit reports,DPRs) Nature of assistance Funding support to MSMEs, industry associations and expert agencies for conducting energy audits, preparing audit reports and DPR. Who can apply? MSMEs , Industry based associations of MSMEs and expert agencies . Please click on the button ‘Eligibility Criteria’ for details. 3. Funding support for implementing pilot projects on ‘Energy Efficient Technologies’ Description The objective is to encourage MSMEs in adopting energy efficient technologies through implementation of pilot projects Nature of assistance Financial support through banks (SIDBI) to MSMEs for adopting energy efficient technologies. 4. Funding support for 'Product Certifications' Description The objective is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National Standardization Bodies or International Product Certifications Nature of assistance Reimbursement of expenditure incurred on product certification. 5. Funding support for setting up of ‘Carbon Credit Aggregation Centres’ Description The support program aims to promote setting up of carbon aggregation centers in the potential clusters having adequate number of EET/Renewable Energy (RE) based projects Nature of assistance Funding support for infrastructure development. 6. Participate in ‘Energy Efficiency’ workshop Description The primary objective of the workshops is to encourage MSMEs adopt energy efficient processes and increase awareness about related DC-MSME schemes. The awareness programme will normally be of one day duration with the participation of at least 30 MSMEs – units from the selected clusters 8. Scheme for Promotion of ICT in Indian Manufacturing Sector ( ICT) an NMCP scheme 1. Funding support for conducting ICT Awareness Workshop Description The objective is to sensitize the MSMEs in the identified cluster towards the benefits from the adoption of ICT tools in their production chain and business process through training and awareness workshops and increase awareness of related DCMSME schemes Who can apply? Technology providers and IT partners. 2. Funding support for establishing National portal Description The scope of this activity includes setting up a National level portal connected with web portals at cluster level to facilitate e-commerce & e-catalogue related facility to MSMEs Nature of assistance Funding support for soft infrastructure upgradation. Who can apply? Any Govt. agency / IT company selected on the basis of EOI( Expression of Interest) . 3. Funding support for ICT infrastructure upgradation Description To support upgradation of ICT infrastructure of MSMEs in the selected clusters, a one-time subsidy of 25 per cent,(subject to the prescribed ceiling,)will be provided to the MSMEs on the institutional finance availed by them for procurement of ICTInformation and Communication Technology related hardware and software. Nature of assistance Funding support to MSMEs for infrastructure upgradation. 4. Funding support for setting up of ‘E-readiness Center’- e-RC Description E-readiness centre will be set up for providing local solution and training of MSME staff, To establish an e-RC, the concerned SPV will provide land & building as per the requirement set out in the cluster-specific DPR. The necessary hardware and software for the centre will be set up by the selected hardware vendor Nature of assistance Financial assistance for infrastructure development Note: The concerned SPV will provide land & building as per the requirement set out in the cluster-specific DPR. The necessary hardware and software for the centre will be provided by the selected hardware vendor. Who can apply? The designated nodal agency along with SPV and IT vendors. 5. Participate in ‘ICT Awareness’ workshop Description The objective is to sensitize the MSMEs in the identified cluster towards the benefits from the adoption of ICT tools in their production chain and business process through training and awareness workshops and increase awareness of related DCMSME schemes 9. Scheme for Building Awareness on Intellectual Property Rights ( IPR) for MSME’s – an NMCP Scheme : Funding support for conducting assessment of IPR related needs of MSMEs Related Scheme Scheme for 'Building Awareness on Intellectual Property Rights' (IPR) for the Micro, Small & Medium Enterprises- an NMCP Scheme. Funding support will be provided for conducting assessment studies Description The support programs aims to promote assessment studies to identify the IPR needs of identified MSME clusters/industries and to recommend measures for strengthening of IP portfolio. Funding Pattern Sl. Activity Maximum Grant No. Per Application/ Proposal (Rs. in Lakh) (a) Awareness/Sensitisation Programmes on IPR (b) Pilot Studies for Selected Clusters/Groups of Industries (c) Interactive Seminars/Workshops 1.00 2.50 2.00 (d) Specialized Training (i) Short term (ST) (ii) Long term (LT) (e) Assistance for Grant on Patent/GI Registration (i) Domestic Patent (ii) Foreign Patent (iii) GI Registration (f) Setting up of ‘IP Facilitation Centre for MSME’ (g) Interaction with International Agencies 6.00 45.00 (i) 0.25 (ii) 2.00 (iii) 1.00 65.00 (i) Domestic Intervention (i) 5.00 (ii) International Exchange Programme (ii) 7.50 Who can apply? Industry associations and other technical experts. 10. Scheme for Support for entrepreneurial and Managerial development of SME’s through Incubators – an NMCP Scheme : Support for setting up of ‘Business Incubators’ Description The objective 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. Funding support for infrastructure development and pilot projects. 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 DC-MSME or their nearest DIs for application. Funding Each Business Incubator (BI) will be given between Rs.4 lakh and Rs. 8 lakh per idea/unit nurtured by them. In addition, each BI or each Host Institution may get: Items @ per BI (a) Upgradation of infrastructure (b) Orientation/Training Rs. 2.50 lakh Rs. 1.28 lakh (c) Administrative Expenses Rs. 0.22 lakh Thus the total assistance per BI - Rs. 66.50 lakhs Implementing The incubational support will be provided by Host Institutions, like: (i) Indian Agencies Institutes of Technology (IITs) (ii) National Institutes of Technology ( NITs) (iii) Engineering Colleges (iv) Technology Development Centres, Tool Rooms, etc (v) Other recognised R&D&/or Technical Institutes/Centres, Development Institutes of DIP&P in the field of Paper, Rubber, Machine Tools, etc. 11. Scheme for enabling manufacturing sector to be competitive through Quality Management Standards and Quality technology Tools – an NMCP Scheme : Funding support for conducting ‘QMS Awareness’ workshops Description This support programs aims at organizing awareness campaigns to sensitize MSMEs, students from it is on Quality Management Standards/Quality Technology Tools like e 6 Sigma tools, 5 S, Kaizen tools and related DC-MSME schemes. Funding support is provided for conducting training and awareness activities. Who can apply? Expert organisations and industry associations.25 to 50% to be collected by the participating MSME industries 12. Scheme for providing financial Assistance on BAR –CODE an NMCP Scheme Reimbursement of registration fee for Bar coding Description The financial assistance is provided towards 75% reimbursement of only one-time registration fee and 75% of annual recurring fee for first three years paid by MSEs to GS1 India for using of Bar Coding 13. Scheme for ISO 9000/ 14001/Certification reimbursement : Reimbursement of certification fees for acquiring ISO Standards Description 1. One-time reimbursement of expenditure to such MSME manufacturing units which acquire ISO 18000/ISO 22000/ISO 27000 Certification 2. Reimbursement up to 75% , subject to maximum of Rs. 75,000/- 14. Scheme for Market Development Assistance( MDA) to MSME’s : Enable participation of MSMEs in international trade fairs and provide funding support Description Encourage participation of representatives from MSMEs under MSME India stall at International Trade Fairs/ Exhibitions. Nature of assistance 1. Free registration for participating in trade fairs. 2. 75% of air fare by economy class and 50% space rental charges for MSMEs (General category entrepreneurs). Note: The total subsidy on air fare & space rental charges will be restricted to Rs.1.25 lakh per unit and one person per MSME unit. 3. For Women/SC/ST Entrepreneurs & Entrepreneurs from North Eastern Region Govt. of India will reimburse 100% of space rent and economy class air fare. 15. Scheme for Vendor Development program(VDP) for ancillarisation : Participation in BuyerSeller meets Description MSMEs and large enterprises can participate in Vendor Development Programs’ VDPs which are organized by MSME Development Institutes to provide common platform for interaction and display of the capabilities, products, goods and services. This funding is available even for large enterprises Nature of assistance Free of cost registration in the event. both national and state level 16. MSE Cluster : a. Funding support for cluster related hard interventions i. This support program aims to enhance and develop cluster infrastructure projects for facilities such as power distribution, water, telecommunication etc. b. Funding support for conducting soft interventions in MSME clusters i. The several soft interventions include activities such as: General awareness, counseling, motivation and trust building, Exposure visits Market development including exports, participation in seminars Workshops and training programmes on technology upgradation etc c. Funding support for preparing cluster level ‘Detailed Project Report (DPR)’ i. This support programs aims at conducting preparation of cluster level DPRs to analyze the technical feasibility and financial viability for setting up CFCs , infrastructural development project for new industrial estate/area/cluster and other aspects d. Funding support for preparing cluster level ‘Diagnostic Study Report (DSR)’ i. This support programs aims at conducting DSRs to map all business processes of the cluster units,do SWOT analysis, analyse problems and impediments, provide suggestions and a well drawn action plan for enhancing competitiveness of the units of the cluster on a self sustaining trajectory of growth e. Funding support for setting up of ‘Common Facility Centers’ i. The support programs aims to set up CFCs including tangible “assets” like Testing Facility, Design Centre, Production Centre, Effluent Treatment Plant, Training Centre, R&D Centre, Raw Material Bank/Sales Depot, Product Display Centre, Information Centre, and any other need based facility for balancing/correcting/improving production line that cannot be undertaken by individual units f. Funding support for setting up of common display centers for women i. Association of women entrepreneurs. ii. The GoI financial assistance (upto 40% of the project cost) shall be available to Associations of Women Entrepreneurs for establishing exhibition centres at central places for display and sale of products of women owned micro and small enterprises iii. The GoI financial assistance (upto 40% of the project cost) shall be available for infrastructure development. g. Participate in awareness programs on ‘Cluster Development’ i. Soft interventions including general awareness, counseling, motivation and trust building, exposure visits, market development including exports, participation in seminars, workshops and training programmes on technology upgradation, etc will be conducted in the cluster for sensitizing the cluster on cluster development activities and trust building.