govt. of india ministry of micro, small & medium ... · pdf fileministry of micro, small...

Govt. of India

Ministry of Micro, Small & Medium Enterprises

Presented by

MSME-Development Institute

Rajajinagar Industrial Estate, Bangalore-560010

DC-MSME SCHEMES

MSME stands for Micro, Small & Medium Enterprises

Manufacturing Sector

(Investment in Plant & Machinery in Rs.)

Services Sector

(Investment in Equipments in Rs.)

Upto 25 lakhs Upto 10 lakhsMicro

> 25 lakhs to 5 Crore > 10 lakhs to 2 CroreSmall

> 5 Crore to 10 Crore > 2 Crore to 5 CroreMedium

MSME Sector – 36 million units

Employment to over 80 million persons

Potential to spread industrial growth across the country

Through more than 6,000 products contributes…..

❖ 8% to GDP

❖ 45% to total manufacturing output

❖ 40% to exports from the country

Credit Guarantee Fund for Micro and Small Enterprises

Credit Linked Capital Subsidy

Trade Related Entrepreneurship Assistance and Development

Public Procurement Policy for Micro and Small Enterprises (MSEs)

Design Clinic

Lean Manufacturing Competitiveness

Quality Management Standards & Quality Technology Tools (QMS/QTT)

Technology and Quality Upgradation(TEQUP)

Marketing Assistance and Technology Upgradation (MATU)

Incubators

IPR

MSME

Intellectual Property Rights (IPR)

ICT

MSME

Information & Communication Technology (ICT)

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National Awards

Zero Defect Zero Effect (ZED)

NATIONAL AWARDS

MSME

Cluster Development Programme(MSE-CDP)


Collateral-free loans for Term loan & Working capital facility for new or existing MSEs

•75% Guarantee cover of credit facility upto Rs. 50 lakh

•80% Guarantee cover - For Women owned/ operated MSEs

•85% Guarantee cover - Loans up to Rs. 5 lakh for micro enterprises.

•Uniform guarantee at 50% - For entire amount if credit exposure is

above Rs.50 lakh & up to Rs. 1 Crore

Credit to Micro and Small Enterprises for loans up to

Rs. 1 Crore without collateral/ third party guarantees


733361

288537348475

273789350056

0

200000

400000

600000

800000

2007-08 to2011-12

2012-13 2013-14 2014-15 2015-16

No

. of

Ap

plic

atio

ns

Financial Year

✓ Corpus of CGTMSE contributed by GoI & SIDBI in 4:1 ratio ~ Rs. 2420 crore

✓ GoI contribution ~ Rs. 1936 crore SIDBI contribution ~ Rs. 484 crore

Total no. of CGTMSE Applications Supported : 21,60,975 credit applications

Total Financial Expenditure : Rs. 858 Crore

Guarantee coverage amounting Rs. 1,03,864 crore (Rs. 1 Lakh Crore)

Facilitating technology up-gradation by providing 15% upfront capital subsidy upto a

maximum of Rs. 15 lakhs (i.e., maximum investment in approved machinery is Rs. 1 crore) to

MSE units

Credit Linked Capital Subsidy Scheme

➢Subsidy to MSE units on institutional finance availed for induction of

state-of-the-art technology .

➢Facilitates subsidy to 51 sub-sectors/products.

➢Implemented by 12 nodal banks/agencies including SIDBI and NABARD.

➢ Linked with term loans availed by MSEs from Banks or Financial

Institutions.

Not applicable for

•Replacement of existing equipment/technology with same

equipment/technology

•Upgrading with second hand machinery.

Credit Linked Capital Subsidy Scheme

16295

5713 62797246

50473391

0

2000

4000

6000

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No

. of

MSE

Be

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icia

rie

s

Financial Year

854.05

343.79421.48 448.85

322.44

216.42

0

100

200

300

400

500

600

700

800

900

Tota

l Am

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of

sub

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ed

(R

s. C

rore

)

Financial Year

Total no. of MSME Units benefitted across the country- 43971 UnitsTotal Amount of Subsidy Released across the country- - Rs. 2607 Crore

Total no. of MSME Units benefitted in Karnataka - 4115 UnitsTotal Amount of Subsidy Released in Karnataka- Rs. 207 Crore

Trade Related Entrepreneurship Assistance and Development

✓Trade Related Entrepreneurship Assistance and Development Scheme For Women

✓Credit to women through NGOs

✓30% grant of loan/ credit - Maximum Rs. 30 lakh

After ZED assessment, Manufacturing MSMEs can reduce wastages substantially, increase

productivity, expand their market , become vendors to CPSUs, have more IPRs, develop new

products and processes etc.


Component Fees (per enterprise) Subsidies for Enterprises

Assessment/Rating by empanelled Credit Rating Agencies

Assessment Fee: Rs. 10,000/- Desktop AssessmentRs. 80,000/- ZED rating Complete AssessmentRs. 40,000/- Additional rating for Defence ZEDRs. 40,000/- Re-Assessment/Re-Rating

80% - Micro60% - Small50% - Medium

Gap Analysis, Handholding, Consultancy for improving rating

Hand holding charges: Rs. 1.9 Lakh 80% - Micro60% - Small50% - Medium (Additional Rs 10,000/- for SC/ST owned MSMEs )

Creating & developing clusters with group of MSEs for facilitating common infrastructure, common facilities, R&D

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

Detailed Project Report (DPR)

If DPR is finally approved, Rs.10 lakh considered as a contribution by

Special Purpose Vehicle (SPV) towards project.

Hard Interventions - Setting up of Common Facility Centers (CFCs)

70% grant of project cost

90% - For CFCs in Clusters with > 50% micro/village/women

owned/SC/ST units

Maximum Rs. 15 crore

Infrastructure Development (Excluding Cost of Land)

60% grant of project cost

80% - For Clusters with > 50% micro/village/women owned/SC/ST units

Maximum Rs. 10 crore

Clusters in Karnataka

Total no. of clusters - 12

No. of Common Facility Centres Under progress - 9

No. of Common Facility Centres completed - 3

Details of Implemented & Functioning Clusters

S.No Name of the cluster Total Project cost (Rs. in Lakhs)

SPV contribution(Rs. in Lakhs)

1 Food Processing Cluster, Gulbarga 23 2.3

2 Readymade Garment Cluster, Hubli 122.24 12.23

3 Auto component Cluster, Hubli 485 48.50

Details of Cluster (Common Facility Centres) Under progress –As on Oct.16

S. No.

Name of the cluster Total Project cost (Rs. in Lakhs)

SPV contribution(Rs. in Lakhs)

Current Status

1 Athani Raisin Processing cluster, Athani Belguam

1494.57 149.46 In principle approved

2 Auto Cluster, Bidar 745.21 74.52 Under Progress

3 Women Entrepreneur park, Harohalli

3680.98 - In principle approved

4 Printing Cluster, Chamrajpet, Bangalore

1449.81 217.47 In principle approved

5 Rasin Cluster, Bijapur 1447.20 144.70 CFC Building Construction -Final stage

6 Heat treatment and Engineering cluster Hubli, Dharwad

455 45.50 CFC Building Construction completed. Tender process for machinery purchases completed.

7 ELCIA, Bangalore 1441.02 216.35 CFC Building Construction completed. Tender process for machinery purchases ongoing

8 Global puffed rice cluster, Chitradurga

717 71.70 Technical Appraisal Report - Progress

9 Uthopia Cashew cluster , Karwar 1467 147 Technical appraisal Report-Completed

20% target of annual procurement mandatory from MSE Sector by Every Central Ministry

/Department / CPSUs. 4% (out of 20% target of annual procurement) earmarked for

procurement from MSEs owned by SC/ST entrepreneurs.

•Every Central Ministry /Department / PSUs - annual target for 20% procurement from MSEs.

• Sub-target of 4% out of 20% target of annual procurement earmarked for procurement from MSEs

owned by SC/ST entrepreneurs.

•358 items reserved for exclusive procurement from MSEs.

•MSEs quoting price within price band L-1 + 15%, when L1 is from someone other than MSE, shall be

allowed to supply at least 20% of tendered value at L-1 subject to lowering of price by MSEs to L-1.

Public Procurement Policy for Micro and Small Enterprises (MSEs)

To facilitate MSMEs to develop new Design strategies & design related products and services (Financial Assistance - Rs. 15 lakh to Rs. 40 lakh for project)

Design project Funding for professionals (% or Maximum ceiling limit whichever is less)75% of project cost or Rs. 15 Lakh (For individual Micro Unit or group of upto 3 Micro Units)75% of project cost or Rs. 25 Lakh (For group of more than 3 Micro Units)60% of project cost or Rs. 25 Lakh (For individual SME Unit or group of upto 3 SME Units)60% of project cost or Rs. 40 Lakh (For group of more than 3 SME Units)

Design Project Funding for Students (% or Maximum ceiling limit whichever is less)75% reimbursement of expenses - Maximum Rs 1.5 lakh for final year student projects done for MSMEs

Design Clinic Scheme for Design Expertise to MSME manufacturing sector

Implementing Agencies

➢National Institute of Design, Ahmedabad

➢Indian Institute of Science, Bangalore

➢CSIR, New Delhi

Some of the Design Projects done by Students

Design Clinic Scheme for Design Expertise to MSME manufacturing sector

Supporting innovators in nurturing new innovative ideas for production ofnew innovative products which can be commercialized in the market.

➢Fund routed through Host Institutions / Business

Incubator (BIs)

➢BIs - Engineering Colleges & reputed Technical Institutions

approved by O/o DC-MSME

➢75 % to 85 % of project cost (Idea), Rs.6.25 Lakh per idea

➢Up to the maximum of Rs. 8 Lakh.

➢220 HIs/BIs across the country.

➢12 Business Incubators in Karnataka

Incubators

Incubators

List of DC-MSME recognized Business Incubators in Karnataka

✓ M.S. Ramaiah School of Advance Studies, Bangalore

✓ Dayanand Sagar College of Enginnering, Bangalore

✓ PES University, Bangalore

✓ Nitte Meenakshi Institute of Technology, Yelahanka, Bangalore

✓ Society for Development of Composites, Bangalore

✓ NMAM Institute of Technology Nitte, Karkalla Taluk

✓ Sri Jayachamarajendra College Engineering-Science & Technology Entrepreneurs Park, Mysore

✓ NITTE University University Enclave, Medical Sciences Complex, Mangalore

✓ NITK-Science & Technology Entrepreneurs’ Park, National Institute of Technology, Surathkal

✓ Manipal Institute of Technology, Manipal

✓ B.V. Bhoomaraddi College of Engineering & Technology, Hubli

Incubators

73

25

16

35

47

24

0

10

20

30

40

50

60

70

80

2008-09to 2011-

12

2012-13 2013-14 2014-15 2015-16 2016-17

No

. of

HI/

BI a

pp

rove

d

Financial Year

GoI - Financial Assistance provided for Ideas : Rs. 26.6 Crores

No. of Business Incubators approved across the county : 220

No. of Ideas Supported through Business Incubators : 720

No. of Business Incubators approved in Karnataka: 13

Total HI/BIs approved: 220 9.73

2.3 2.51 2.68

6.22

3.07

0

2

4

6

8

10

12

Go

IAss

ista

nce

(In

Cro

re)

Financial Year

Incubators

Some of the Innovative Ideas Supported through Business Incubators in Karnataka

Dayanand Sagar College of Engineering

Priyanka Sexena Development of Non Invasive Portable Vein Locator

Hemant Singh Tomar Gesture based computing platform

M.S. Ramaiah School of Advance Studies, Bangalore

Ipseeeta Jena Cost effective nutraceuticals to combat diabetes, obesity & protein

deficiency

Rizwan Pasha A novel approach towards the development of biodegradable palm

fiber mats along of vitamin A& E as by products

Deepak BajantriDevelopment of low cost artificial diets for healthy rearing of silk room

Deepa H N EPN Biocontrol technology to protect crops against insect pests, while

avoiding chemical pesticides

Enhance awareness of MSMEs about Intellectual Property Rights

➢Patent - exclusive right granted for new

invention. Owner gets right to prevent /stop

others from making, selling or importing without

prior permission.

➢ Geographical Indications (GI) - associated with

characteristic of goods essentially attributable to

its geographical origin.

IPR

MSME

Intellectual Property Rights (IPR)

Financial Assistance for Grant on Patent/GI Registration

➢Domestic patent– Rs.25000/-

➢Foreign patent – Rs. 2 lakh

➢Geographical Indication (GI) registration– Rs. 1 lakh

MSMEs assisted in reducing manufacturing costs through application of Lean Manufacturing techniques like 5S, Poka-Yoke, SMED, KANBAN, JIT etc.,

➢Formation of Mini Cluster with ideally 10 MSMEs (minimum 6

units)

➢Payment to Lean Manufacturing Consultants Charges – Maximum

Rs. 36 Lakh per mini cluster


Units under Lean Manufacturing Competitiveness Scheme in BANGALORE

✓Unnathi CNC Technologies Pvt Ltd, Peenya

✓Progressive Systems, Peenya

✓Accutech Enterprises, Peenya

✓Burji Enterprises, Peenya

✓Sunrise Technologies, Peenya

✓Karthik Industries, Peenya

✓Growell CNC System, Peenya

✓Mighty Machine Tools, Peenya

✓Excellence Technologies, Peenya

✓Lakshmi Prasanna Precitech, Abbigerere


Improving quality of products in MSE sector by implementing QMS - ISO 9000/18000/22000 & QTT - 6 Sigma, TQM, TPM etc.

Organising Competition–watch (C-watch)

➢Conduct ‘Professional Study’ of ‘threatened product’ - Rs. 2.5 lakh

➢Technical exposure visit by representatives of ‘threatened product’ – Rs. 7.5 lakh

➢Procurement of samples & technical details - Rs. 2.5 lakh

➢Product development by technical bodies- Rs. 5 lakh

➢Popularization of improved product - Rs.1.5 lakh

Implementation of QMS/QTT in selected MSEs

➢Rs. 2.5 lakh per unit (for 100 MSEs) - For Diagnostic Study & QMS/QTT implementation

Monitoring international study missions

➢Rs.2.5 lakh /MSE (Two delegations /year to International Events)adopt latest QMS/QTT

Quality Management Standards & Quality Technology Tools (QMS/QTT)

Sensitize manufacturing MSME sector to use of Energy Efficient Technologies, Encourage

MSMEs to acquire Product Certification/Licences from National/International bodies

Capacity Building of MSME Clusters for Energy Efficiency/Clean Development Mechanism

75% of expenditure-Rs. 9 lakh per cluster for conducting cluster level energy audits & model DPRs

50% of expenditure - Maximum Rs.1.5 lakh for Preparation of DPRs for MSMEs on EET projects

Implementation of Energy Efficient Technologies (EET) in MSMEs

25% of project cost - Maximum Rs.10 lakh for implementation of EET

Setting Up of Carbon Credit Aggregation Centres (CCA)

75% of expenditure - Maximum Rs.15 lakh per CCA centre.

Encouraging MSMEs to Acquire Product Certification Licenses from National/ International Bodies

75% of expenditure, towards licensing of product to National/ International Standards

Maximum Rs.1.5 lakh for National certification (BIS,BEE,etc.)

Maximum Rs. 2 lakh for International certification (CE,UL,ANSI,Energy star, etc.)

Technology and Quality Upgradation(TEQUP) Support to MSMEs

Sensitize & encourage MSMEs towards CLOUD COMPUTING for ICT adoption.

Cloud Computing: Subsidy of Rs. 3 lakh (maximum) per unit, for user

charges for a period of maximum three years

ICT

MSME

Information & Communication Technology (ICT)

Subsidy %

Category 1st

Year2nd

Year3rd

Year

Micro 85% 75% 70%

Small 75% 70% 65%

Medium 60% 55% 50%

Women/NER 85% 75% 70%

Encourage manufacturing Micro and Small Enterprises (MSEs) to tap & develop domestic / overseas market opportunities.

Domestic Fairs / Exhibitions

80% Space Rent reimbursement (100% for SC/ST/Women/PH units) Maximum Rs.20000/-

100% Contingency Expenditure reimbursement (Travel, Publicity, Freight) Maximum Rs.10000/-

International Trade Fairs / Exhibitions:

80% space rent reimbursement (100% for SC/ST/Women units) Maximum Rs.1 lakh

100% Economy class air fare reimbursement Maximum Rs.1.25 lakh

Reimbursement on obtaining Bar Code:

75% reimbursement of one time registration fee and Annual recurring fee (for first three years) paid by

MSEs to GS1 India.

Vendor Development Programmes:

National Level Vendor Development Programs-cum-Exhibitions, State Level VDPs

Large scale organizations (BEL, BHEL, TELCO, BSNL, IOC, NHPC, NTPC etc.) interact with MSEs in

registering potential vendors.


List of International Trade Fairs organised by ITPO (India Trade Promotion Organization), New Delhi approved by DC-MSME 2016-17


S. No

Events Place Month Products

1 National Hardware Show Las Vegas(USA) May 2016 Hand tools, DIY products

2 14th Global Indian FestivalKuala Lampur

(Malaysia)June 2016 Multi products

3 Africa big seven/SAITEXJohannesburg(South

Africa)June/July 2016

Multi products/processed

foods

4Thessaloniki International

FairThessaloniki(Greece) Sep 2016 Multi products

5 Fiera Del Lavnete Bari(Italy) Sep 2016 Multi products

6 India sourcing Fair Moscow, Russia Sep 2016 Multi products

7 AAPEX &SEMA Shoe Las Vegas, USA November 2016 Auto parts

8 AF-L Artigiano De Fiera Milan(Italy) December 2016 Handicrafts

9 India Sourcing Fair Chile Feb/March 2017 Multi products

10 Cairo International Fair Egypt March 2017 Multi products

List of International Trade Fairs organised by EEPCINDIA (Engineering Exports Promotion Council), New Delhi approved by DC-MSME 2016-17


S. No


1 India pavilion at

HANNOVER Messe

HANNOVER, Germany 25-29 April

2016

Industrial Show

2 INDEE Peru Lima. Peru August 2016 Multi Products

3 India pavilion at Ferretera Gudalajara ,Mexico 8-10 Sep 2016 Tools And Hardware,

Electrical Construction,

Industrial Safety

4 INDEE Kenya Kenya 8-10 November Multi Engineering

Products

5 INDEE Iran Iran Feb 2017 Multi Engineering

Products

List of International Trade Fairs organised by FIEO (Federation of Indian Export Organisations), New Delhi approved by DC-MSME 2016-17


S. No


1 International Handicrafts

Trade Fair

Italy Apr-May 2016 Handicraft Items, Textiles,

Readymade Garments ,Artificial

Jewellery, Leather

2 Shoppers Stop Expo 2016 Melbourne,

Australia

May 19-22,2016 Apparels, Fashion Accessories,

Home Textiles Etc

3 Asian International Trade

Fair

Mauritius 1-10 Oct 2016 Gits And Handicrafts ,Fashion

Jewellery, Accessories , Clothing

And Accessories, Handicraft

Items, Readymade Garments

4 The Chinese New Year

Shopping Festival

Chengdu,

China

Jan-Feb 2017 Home Products, Jewellery And

Fashion Accessories, Leather

Goods, Gift Items, Products

National recognization of achievements of successful MSME entrepreneursCash prize (1st Prize–Rs. 3 lakh, 2nd–Rs. 2 lakh, 3rd–Rs. 1.5 lakh for most categories),Certificate & trophy for award winners, Award winners are given Economy class Air fare to &fro journey

National AwardsNATIONAL AWARDS

MSME

Categories

➢ Outstanding efforts in entrepreneurship (Manufacturing)

➢ Outstanding efforts in entrepreneurship (Service)

➢ Innovation Efforts

➢ Quality Products

➢ Lean Manufacturing Techniques

➢ Special National Award to outstanding Woman Entrepreneur

➢ Special National Award to outstanding SC/ST Entrepreneur

➢ Special National Award to outstanding NER Entrepreneur

➢ Privilege of Award Winners allowing employees to wear labels, pins, ties or other badgeswith symbol of Awards

www.udyogaadhaar.gov.in www.msmedatabank.in

For Starting an Enterprise/Udyog Aadhaar & MSME Data Bank registration/MSME Assistance.. Visit our Office at….

MSME-DEVELOPMENT INSTITUTERAJAJI NAGAR INDUSTRIAL ESTATE

WEST OF CHORD ROAD, BANGALORE-560010

Land Mark:

Opp. Rajaji Nagar Fire Station

Opp. Padmavathy Kalyana Mandapa

Adjacent. GTTC (Government Tool Room & Training Centre)

Call us: 080 23151581/82/83

Mail us: [email protected] to know our schemes:

www.dcmsme.gov.in

West of ChordRoad

Towards RajajinagarMetro/Yeswantpur

Towards Magadi Road Toll Gate

MSME-DEVELOPMENT

INSTITUTE

GTTCPADMAVATHY KALYANA MADAPA

RAJAJINAGAR FIRE STATION

SIDVIN HOSPITAL

STATE BANK OF INDIA, IND. ESTATE BRANCH

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