Incentive Scheme at Management Development Institutes - PowerPoint

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   Other MSME Schemes
Schemes under
Support for Entrepreneurial and Managerial Development
Support for Entrepreneurial and Managerial Development
Support for Entrepreneurial and Managerial Development
Enabling Manufacturing Sector to be competitive through
Quality Management Standard & Quality Tech. Tools
National Campaign for Investment in Intellectual Property
National Campaign for Investment in Intellectual Property
Other NMCP Schemes

- Marketing Support/Assistance to MSMEs (Bar Code)

- National Programme on Application on Lean Manufacturing (LEAN)

- Mini Tool Rooms proposed to be set up by Ministry of MSME (MTR)

- Promotion of ICT in Indian Manufacturing Sector (ICT)

- Technology & Quality Upgradation Support (TECH UP)

- Design Clinic Scheme for design expertise to Manufacturing sector (DESIGN)

- Marketing Assistance/SMEs and Technology Up gradation Activities
  Ministry of MSME in co-operation with TIFAC (tec inf and forecasting and
  assessment council ) /CSIR (MARKETING)
  Other Schemes for
Development of MSMEs
 MSE-Cluster Development Programmes
Clusters are defined as sectoral and geographical concentration of micro, small &
medium enterprises with interconnected production system leading to firm/unit level
specialization and developing local suppliers of material inputs and human resources.
Availability of a local market/intermediaries for the produce of the cluster is also a
general characteristic of a cluster

This Ministry runs various schemes and programmes for promotion and development
of micro & small enterprises. The assistance through these schemes and programmes
is provided for individual or collective development of MSE. The strategy is now to
subsume the essential features of the schemes having collective approach for
development of clusters such as Scheme for Integrated Infrastructural Development
and Scheme for setting up of Testing Centres/ programmes under SICDP. Although the
objective of SICDP is to proved assistance to MSE for common purpose, it is also not
less important to strengthen industrial units located in the cluster individually. There
are schemes of Ministry of SSI for credit, technology upgradation, quality certification,
such as, Credit Guarantee Scheme for investment, Credit Linked Capital Subsidy
Scheme for technology upgradation, ISO 9000/14001 reimbursement scheme for
certification, etc. through which assistance is provided to an individual micro & small
enterprises. Under the new approach, the emphasis is to dovetail all such schemes
under SICDP for the overall development of MSE and optimum utilisation of resources.
Scheme for Capacity Building
Scheme of International Cooperation
Technology infusion and/or upgradation of Indian MSMEs, their modernisation and promotion of their
     exports are the principal objectives of assistance under the Scheme of International Cooperation.
     The Scheme covers the following activities:

     (i) Participation by Indian MSMEs in exhibitions, fairs and buyer-seller meets in India, in which
          there is international participation.
     (ii) Deputation of MSME business delegations to other countries for exploring new areas of
          technology infusion/upgradation, facilitating joint ventures, improving market of MSME
          products, foreign collaborations, etc.
     (iii) Holding international conferences and seminars on topics and themes of interest to the

2. Eligible Organisations
     Besides the Ministry of MSME, events under the Scheme can be organised by:
     (a) State/Central Government Organisations;
     (b) Industry/Enterprise Associations; and
     (c) Registered Societies/Trusts associated with the MSME.

3. Eligibility Conditions
The eligibility conditions financial assistance under the Scheme are:
    (a)    The organisation should be suitably registered (i.e., companies under the
           Companies Act, societies under the Societies Act, etc.) with the primary
           objective of promotion and development of MSME.
     (b)   The organisation must be engaged in such activities for at least last 3 years and have a
           good track record.

     (c)   The organisation should have regular audited accounts for the past 3 years.

     (d)   Events, for which financial support under the Scheme is sought, must have significant
           international participation.
Credit Linked Capital Subsidy Scheme (CLCSS)
The revised scheme aims at facilitating technology up gradation by providing 15 per cent upfront
capital subsidy with effect from the 29 th September, 2005 (12 per cent prior to 29.09.2005) to SSI
units, including tiny, khadi, village and coir industrial units (hereinafter referred to as SSI units), on
institutional finance availed of by them for induction of well established and improved technologies in
the specified sub-sectors / products approved under the scheme.
Scope of the Scheme

3.1         The scheme would cover the following technology needs / products/sub - sectors:

i)          Bio-tech Industry
ii)         Common Effluent Treatment Plant
iii)        Corrugated Boxes
iv)         Drugs and Pharmaceuticals
v)          Dyes and Intermediates
vi)         Industry based on Medicinal and Aromatic plants
vii)        Plastic Moulded/ Extruded Products and Parts/ Components
viii)       Rubber Processing including Cycle/ Rickshaw Tyres
ix)         Food Processing (including Ice Cream manufacturing)
x)          Poultry Hatchery & Cattle Feed Industry
xi)         Dimensional Stone Industry (excluding Quarrying and Mining)
xii)        Glass and Ceramic Items including Tiles
xiii)       Leather and Leather Products including Footwear and Garments
xiv)        Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control;
            Analytical, Medical, Electronic Consumer & Communication equipment etc.
xv)         Fans & Motors Industry
xvi)        General Light Service(GLS) lamps
xvii)       Information Technology (Hardware)
xviii)      Mineral Filled Sheathed Heating Elements
xix)        Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils
xx)         Wires & Cable Industry
xxi)        Auto Parts and Components
xxii)       Bicycle Parts
xxiii)      Combustion Devices/ Appliances
xxiv)       Forging & Hand Tools
xxv)        Foundries – Steel and Cast Iron
xxvi)       General Engineering Works
xxvii)      Gold Plating and Jewellery
xxviii)     Steel Furniture
xxx)        Toys
xxxi)       Non-Ferrous Foundry
xxxii)      Sport Goods
xxxiii)     Cosmetics
xxxiv)      Readymade Garments
xxxv)       Wooden Furniture
xxxvi)      Mineral Water Bottle
xxxvii)     Paints, Varnishes, Alkyds and Alkyd products
xxxviii)    Agricultural Implements and Post Harvest Equipment
xxxix       Beneficiation of Graphite and Phosphate
xxxx)       Khadi and Village Industries
xxxxi)      Coir and Coir Products
xxxxii)     Steel Re-rolling and /or Pencil Ingot making Industries
xxxxiii)    Zinc Sulphate
xxxxiv)     Welding Electrodes
xxxxv)      Sewing Machine Industry
xxxxvi)     Industrial Gases
xxxxvii)    Printing Industry
xxxxviii)   Machine Tools
Credit Guarantee Fund Scheme for Small Industries
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 corpus of CGTMSE is
being contributed by the Government and SIDBI in the ratio of 4:1 respectively and has contributed Rs.1346.54 crore to the
corpus of the Trust up to September 30, 2007. Based on the future requirement, the corpus is likely to be raised to Rs.2500

Eligible Lending Institutions

The 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). National Small Industries Corporation Ltd. (NSIC), North Eastern Development Finance Corporation Ltd.
(NEDFi) and SIDBI have also been made eligible institutions. As on September 30, 2007, there are 62 Member Lending
Institutions (MLIs) of the Trust, comprising 28 Public Sector Banks, 13 Private Sector Banks, 18 Regional Rural Banks and
3 other Institutions viz., NSIC, NEDFI and SIDBI.
Credit Guarantee Fund Scheme for Small

Eligible Credit Facility
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. For those units covered under
the guarantee scheme, which may become sick owing to factors beyond the control of management,
rehabilitation assistance extended by the lender could also be covered under the guarantee scheme. It
is noteworthy that if the credit facility exceeds Rs.50 lakh, it may still be covered under the scheme but
the guarantee cover will be extended for credit assistance of Rs.50 lakh only. Another important
requirement under the scheme is that the credit facility should be availed by the borrowing unit from a
single lending institution. However, the unit already assisted by the State Level Institution/NSIC/NEDFi
can be covered under the scheme for the credit facility availed from member bank, subject to
fulfillment of other eligibility criteria. Any credit facility in respect of which risks are additionally covered
under a scheme, operated by Government or other agencies, will not be eligible for coverage under
the scheme.
ISO Reimbursement Scheme

The Small Scale Sector has emerged as dynamic and vibrant sector of Indian Economy and it has

been making significant contribution to industrial production, export and employment generation. The

process of economic liberalization and market reforms has opened up the Indian small scale sector to

the global competition. In order 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 provides incentive to those small scale/ ancillary

undertaking who have acquired ISO 9000/ISO 14001/HACCP certifications. The scheme for ISO 9000

reimbursement in operation since March, 1994 has now been enlarged so as to include

reimbursement of expenses for acquiring ISO 14001 certification also vide this Office Administrative

Order No.41(8)/ISO/Electx./2002 dt. 28th October, 2002. More than 2375 SSI & ancillary units have

already been benefited from the earlier scheme of ISO 9000 till 31st March, 2002.
ISO 9000 Reimbursement scheme
The Salient features of the Scheme

 1. 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.

 2. The Permanent Registered Small Scale/ancillary/Tiny/Small Scale Service Business Enterprises (SSSBE) units are
    eligible to avail the Incentive Scheme.

 3. The Scheme is applicable to those SSI/ancillary/Tiny/SSSBE units who have already acquired ISO-9000/ISO-
    14001/HACCP certification.

 4. It is an all India Scheme administered by Development Commissioner (SSI), Ministry of SSI, Govt. of India. With
     effect from 30.8.2006 procedure of the Screening Committee to decide the reimbursement has been discontinued
     and the Screening Committee has been dismantled to reduce delay in the sanctioning of reimbursement to the
     applicants. The Industrial Adviser co-coordinating this Scheme, has been delegated with powers to sanction the
     reimbursement as per the present provisions for reimbursement.

 5. The Scheme shall provide one time reimbursement only against a Entrepreneurship Memorandum Number. The
    amount of incentive/subsidy/grant already availed for acquiring ISO 9000 or ISO 14001/HACCP Certification under
    any Central Govt. (including DC(MSME) Incentive Scheme)/State Govt. /Financial Institution shall be adjusted
    against the entitlement of reimbursement. It means the total entitlement of reimbursement of acquiring one or
    more than on certifications shall be up to the maximum limit of Rs. 75,000/- only. In case a unit has received
    reimbursement/subsidy/grant from Central Govt./State Govt./Financial Institution against any one of the
    certifications for an amount less than maximum limit of Rs. 75,000/-, the unit shall be eligible to receive the
    balance amount only.

 6. (a) Only one time reimbursement is allowed against a E.M.Number for acquiring ISO-9000/ISO-14001/HACCP
    certification; irrespective of the fact whether the concerned SSI has one or more than one Unit(s) within the same
    premises/location or outside .

    (b) In case an ISO-9000/ISO-14001/HACCP certificate is obtained jointly by SSI units (even having a separate
    Permanent E.M.Number) under the corporate/group of Industries category, the total reimbursement shall be
    limited to 75% of the total expenditure incurred by the concerned units or Rs. 75,000/- whichever is less; and each
    SSI unit shall get the amount on pro-rata basis.
Other MSME Schemes
   Participation in the International Exhibitions / Fairs - For registered Small & Micro manufacturing enterprises
    with DI/DIC

   Financial Assistance for using Global Standards (GS1) in Barcoding - Recognized the importance of barcoding
    and avail financial assistance through Office of DC(MSME).

   Purchase and Price Preference Policy - This is administered through the Single Point Registration Scheme of
    NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government. Other
    facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price
    preference in Central Government purchases - for individual MSMEs

   Integrated Infrastructure Development (IID Scheme) - Assistance upto 40% or Rs.2.00 crores, whichever is less
    for setting up industrial estates for MSME units. For NE, assistance is 80% or Rs.4.00 crores - for State
    Governments/industry associations/ NGOs.

   Mini Tool Rooms - Assistance upto 90% or Rs.9.00 crores, whichever is less for setting up new Mini Tool Rooms.
    For upgradation of existing Tool Rooms, assistance is 75% or Rs.7.5 crores - for State Governments.

   MSME MDA - The scheme offers funding upto 90% in respect of to and fro air fare for participation by MSME
    Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity
    material (upto 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50%
    upto Rs. 1 lakh) - for individual MSMEs & Associations.

   Assistance to Entrepreneurship Development Institutes - For strengthening training infrastructure in EDIs,
    assistance upto 50% or Rs. 50 lakhs whichever is less - for State Governments.
             Thank you
 For Further Information Please Contact:
MSME- Development institute
Ministry of MSME,
Kurla Andheri Road, Sakinaka
Mumbai-400 072
Phone: 022-25874305/6090, Fax: 2857 8092

Description: Incentive Scheme at Management Development Institutes document sample