MSME Registration and Its Benefits

MSME Registration & its benefits
CA Rajesh D
rajeshd@sbsandco.com
Date:06/16/16
By

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 Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of
the Indian economy over the last five decades.
 MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital
cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing
regional imbalances, assuring more equitable distribution of national income and wealth.
 MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to
the socio-economic development of the country.
 The Sector consisting of 36 million units, as of today, provides employment to over 80 million persons. The
Sector through more than 6,000 products contributes about 8% to GDP besides 45% to the total
manufacturing output and 40% to the exports from the country.
 Khadi and Village Industries (KVI) are two national heritages of India. It creates employment at a very low per
capita investment. The KVI Sector not only serves the basic needs of processed goods of the vast rural sector
of the country, but also provides sustainable employment to rural artisans
MSME- Overview

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MSME- Overview

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MSME- Overview

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MSME- Overview

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MSME- Overview

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 On 9 May 2007, subsequent to an amendment of the Government of India (Allocation of
Business) Rules, 1961, erstwhile Ministry of Small Scale Industries and the Ministry of Agro and
Rural Industries were merged to form the Ministry of Micro, Small and Medium Enterprises (M/o
MSME).
 It is governed by MSMED Act,2006.
MSME- Governed by

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MSME- Ministry overview

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 The M/o MSME is having two Divisions called
Small & Medium Enterprises (SME) Division and Agro & Rural Industry (ARI) Division.
The SME Division Scope of work .
 Administration, Vigilance and administrative supervision of the National Small Industries Corporation
(NSIC) Ltd., and the three autonomous national level entrepreneurship development/training originations
- National Institute for Entrepreneurship and Small Business Development (NIESBUD), NOIDA, --
- National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad,
- Indian Institute of Entrepreneurship (lIE),
ARI Division Scope of Work:
 Administration of two statutory bodies viz. the Khadi and Village Industries Commission (KVIC), Coir Board
and a newly created organization called Mahatma Gandhi Institute for Rural Industrialization (MGIRI).
 It also supervises the implementation of the Prime Minister's Employment Generation Programme
(PMEGP).
MSME- Ministry overview

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Limits as specified under MSME
act, 2006
Investment Limit (in INR)
Manufacturing Enterprises
Plant and Machinery
(excluding land and building)
Service Enterprises
Equipment
(excluding land and building)
Micro Enterprise
Not more than 25,00,000 (Rupees
Twenty Five Lakhs only).
Not more than10,00,000 (Rupees
Ten Lakhs only).
Small Enterprise
Between 25,00,000 (Rupees
Twenty-Five Lakhs only)
to 5,00,00,000 (Rupees Five Crores
only).
Between 10, 00, 000 (Rupees Ten
Lakhs only) and 2,00,00,000
(Rupees Two Crores only).
Medium Enterprise
Between 5,00,00,000 (Rupees Five
Crores only) to 10,00,00,000
(Rupees Ten Crores only).
Between 2,00,00,000 (Rupees Two
Crores only) and Rs. 5,00, 00,000
(Rupees Five Crores only).
MSME -Definition

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 Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 insists on
Mandatory Procurement from Micro Small & Medium Enterprises
 Every Central Ministry or Department or Public Sector Undertaking shall set an annual goal of
procurement from Micro and Small Enterprises from the financial year 2012-13 and onwards,
with the objective of achieving an overall procurement of minimum of 20 per cent, of total
annual purchases of products produced and services rendered by Micro and Small Enterprises
in a period of three years.
 Annual goal of procurement also include sub-contracts to Micro and Small Enterprises by large
enterprises and consortia of Micro and Small Enterprises formed by National Small Industries
Corporation.
 After a period of three years i.e. from 1st April 2015, overall procurement goal of minimum of 20
per cent shall be made mandatory.
MSME- Major Benefits

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 The major benefit for MSMEs is the reservation policy, which reserves certain items, for
exclusive manufacture by these enterprises, thus, protecting their interests, as well as providing
impetus to the society by generating employment opportunities.
 Central Government reserved three hundred fifty (350) items for purchase from MSMEs, under
the Government Stores Purchase Programme.
 To encourage the small-scale units, the SEZs are required to allocate 10 per cent space for the
small-scale units. Under the MSMED Act,
 For the purposes of registration, the two part Entrepreneurs€™Memorandum has to be submitted
to the concerned District Industries Centre.

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 Filing of an Entrepreneurs€™Memorandum is optional for a MSM enterprise engaged in providing
services, however in firm engaged in manufacturing it is mandatory.
 MSE sector now has greater access to credit as a result of its classification as a priority lending
sector. The banks are required to compulsorily ensure that specified percentage of their overall
lending is made to priority sectors.
 The priority sectors include agriculture, small enterprises, retail trade, etc.
 While for domestic commercial bank, separate target is set vis a vis with its overall credit target.

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 Out of the total advances to small enterprise sector,
 60 per cent is reserved for micro enterprises
 40 per cent for the small enterprises.
 Out of this 60 per cent quota,40 per cent of the total advances to MSE sector is reserved for micro
(manufacturing) enterprises.
 Lending to medium enterprises is not considered to be a priority sector lending.
 Micro and small enterprises are also entitled to collateral free loan up to INR 10, 00,000 which
may go up to INR 25, 00,000 with the approval of the appropriate authority.

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 The list of items exclusively reserved for production by MSEs is limited to twenty (20)
items.
 Some examples of reserved items are pickles and chutneys, bread, mustard oil, ground
nut oil, exercise books and registers, wooden furniture and fixtures, candles, laundry
soap, safety matches, fireworks, agarbattis, glass bangles, steel almirahs and stainless
steel and aluminium utensils.
 Though reserved exclusively for MSMEs, these items can also be manufactured by
Large/Medium units provided they undertake to export a minimum of 50 per cent of
the new or additional annual production of the MSE reserved items within a maximum
period of three years from the date of commencement of commercial production of
such reserved items.
MSME –Major Benefits

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 If a Micro or a small Enterprise crosses the permissible investment limits, they would have to
re-file part II of the Entrepreneurs€™Memorandum. If the investment limit in a Medium
enterprise exceeds the permissible limit, it will become liable for de-registration and would
not be eligible for preferred treatment reserved for the MSMEs.
MSME- Exceeding investment limit

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SME Division Scheme
 Scheme for 'Providing financial assistance on International Cooperation
 Scheme for 'providing financial assistance for performance and credit rating
under PCR (Performance and Credit Rating) Scheme
 Scheme for providing establishment of new institutions (EDIs), strengthening
the infrastructure for EDIs under ATI Scheme
 Scheme for providing financial assistance on marketing support under
Marketing Assistance Scheme
 Financial Assistance of up to 95% of airfare and space rent to entrepreneurs.
MSME- Schemes

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 Credit Guarantee
 MSME Ministry , GoI and Small Industries Development Bank of India (SIDBI), established a
Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to
implement Credit Guarantee Fund Scheme for Micro and Small Enterprises. The corpus of
CGTMSE is being contributed by GoI and SIDBI.
 Nature of assistance
Collateral free loans up to a limit of Rs.50 lakh - for individual MSEs
 Who can apply
Both existing and new enterprises are eligible under the scheme.
 How to apply Candidates
meeting the eligibility criteria may approach banks/financial institutions, which are eligible
under the scheme, or scheduled commercial banks and select Regional Rural
MSME Scheme

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 Credit Linked Capital Subsidy (CLCS) for Technology Upgradation
 Description
Technology upgradation would ordinarily mean induction of state-of-the-art or near state-of-the art
technology. It would also mean a significant step up from the present Development Commissioner (DC-
MSME) Schemes Related scheme Credit Guarantee Related scheme Credit Linked Capital Subsidy (CLCS)
for Technology Upgradation 5 technology level to a substantially higher one involving improved
productivity, and/or improvement in quality of products and/or improved environmental conditions
including work environment for the unit.
It includes installation of improved packaging techniques as well as anti-pollution measures and energy
conservation machinery. Further, units in need of introducing facilities for in-house testing and online
quality control would qualify for assistance, as the same are a case of technology up-gradation.
Replacement of existing equipment/technology with same equipment/technology will not qualify for
subsidy under this scheme, nor would the scheme be applicable to units upgrading with used machinery
MSME Scheme

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 Credit Linked Capital Subsidy (CLCS) for Technology Upgradation
 Nature of assistance
o 15% upfront capital subsidy to MSEs, on institutional finance availed by them for induction of well
established and improved technologies in specified sub-sectors/products approved under the scheme.
o Ceiling on loans under the scheme has been raised from Rs.40 lakh to Rs.1 crore
o Rate of subsidy has been enhanced from 12% to 15%.
o Admissible capital subsidy is calculated with reference to purchase price of plant and machinery, instead of
term loan disbursed to the beneficiary unit.
 Who can apply
sole proprietorships, partnerships, co-operative societies, and private and public limited companies in the MSE
sector. Priority shall be given to women entrepreneurs.
 How to apply
Candidates meeting the eligibility criteria may approach all scheduled commercial bank, scheduled cooperative
bank [including urban cooperative bank co-opted by SIDBI under Technological Upgradation Fund (TUF)],
Regional Rural Bank (RRB), State Financial Corporation (SFC) and North-Eastern Development Financial
Institution (NEDFi).
MSME Scheme

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 Micro & Small Enterprises Cluster Development Programme (MSE-CDP)
 The Ministry of MSME has adopted cluster development approach as a key strategy for enhancing
productivity and competitiveness as well as capacity building of MSEs and their collectives in the country.
Clustering of units also enables the providers of various services to them, including banks and credit
agencies, to provide their services more economically, thus reducing the costs and improving the
availability of services for these enterprises.
 Nature of Assistance
 Diagnostic Study • Soft Intervention • Setting up of Common Facility Centres (CFCs) • Infrastructure
Development (Upgradation/ New)
 Cost of project and Govt. of India assistance:
 • Diagnostic study - maximum cost Rs.2.50 lakh. •
 Soft interventions - maximum cost of project Rs.25.00 lakh, with GoI contribution of 75%
 Hard interventions, i.e., setting up of CFCs – maximum eligible project cost of Rs.15.00 crore with GoI
contribution of 70% (90% for special category States and for clusters with
MSME Scheme

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 Micro & Small Enterprises Cluster Development Programme (MSE-CDP)
 Infrastructure development in the new/ existing industrial estates/areas;
 maximum eligible project cost Rs.10.00 crore, with GoI contribution of 60%
Who can apply
Industrial associations/Consortia, Clusters
How to apply
Only online applications are considered with effect from 01-04-2012. Hard copy of applications need to be
sent through State Governments or their autonomous bodies or field institutes of the Ministry of MSME i.e.,
MSMEDIs.
The proposals are to be approved by the Steering Committee of MSE-CDP.
MSME Scheme

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 MSME Market Development Assistance (MDA)
 MDA is offered in three forms as mentioned below:
1) Participation in the international exhibitions/ fairs - for registered small & micro manufacturing
enterprises with DI/DIC.
2) Financial assistance for using Global Standards (GS1) in barcoding.
3) Recognised importance of barcoding and avail financial assistance through Office of the
Development Commissioner Micro, Small and Medium Enterprises (DC - MSME).
 Nature of assistance
 The scheme offers funding up to 75% in respect of to and fro air fare for participation in overseas
fairs/trade delegations.
 The scheme also has provision of funding for producing publicity material (up to 25% of costs),
 sector specific studies (up to Rs.2 lakh) and for contesting anti-dumping cases (50% up to Rs.1 lakh) - for
individual MSMEs & associations.
 Who can apply
Individual MSMEs & industry associations.
MSME Scheme

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 Entrepreneurial and Managerial Development of SMEs through Incubators
 The scheme endeavours to provide early stage funding for nurturing innovative business ideas (new
indigenous technology, processes, products, procedures, etc.) which could be commercialised in a year.
Under this scheme financial assistance is provided for setting up of business incubators.
 Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary from Rs.4 to 8 lakh for each
incubatee/idea, subject to overall ceiling of Rs.62.5 lakh for each BI.
 Items @ per BI (Business Incubators )
 a) Upgradation of infrastructure Rs. 2.50 lakh
 b) Orientation/training Rs. 1.28 lakh
 c) Administrative expenses Rs. 0.22 lakh
 Thus the total assistance per BI - Rs. 66.50 lakh
 Who can Apply
Any individual or MSME having innovative ideas ready for commercialisation can apply to the host
institution (e.g., IITs, NITs, technical colleges, research institutes, etc.)
MSME Scheme

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 Performance and Credit Rating
 This scheme seeks to establish independent, trusted third party opinion on capabilities and credit-
worthiness of MSEs, and makes credit available at attractive interest rates.
 Enable MSMEs recognition in global trade, ensure prompt sanctions of credit from banks and financial
institutions, subsidized rating fee structure for MSEs, facilitate vendors/buyers in capability and capacity
assessment of MSEs, enable the MSEs to ascertain the strengths and weaknesses of their existing
operations and take corrective measures.
 Turnover of MSE Re-imbursement of fee through NSIC
Up to Rs.50 lakh75% of the fee or Rs.25,000 (whichever is less)
Above Rs.50 to 200 lakh75% of the fee or Rs.30,000 (whichever is less)
More than Rs.200 lakh 75% of the fee or Rs.40,000 (whichever is less)
 Who can apply
 Any enterprise registered in India as a Micro or Small Enterprise is eligible to apply.
NSIC - Scheme

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PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)
MSME- Schemes
Categories of beneficiaries under PMEGP Beneficiary’s
contribution
(of project
cost)
Rate of Subsidy
(of project cost)
Area (location of project/unit Urban Rural
General Category 10% 15% 25%
Special (including SC / ST / OBC
/Minorities/Women, Ex-servicemen,
Physically handicapped, NER, Hill and
Border areas etc.
05% 25% 35%
Note:
(1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.
(2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.
(3) The balance amount of the total project cost will be provided by Banks as term loan

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MSME- Schemes
ARI Division
Schemes Financial Assistance
Setting up a new enterprise under PMEGP
(Prime Minister Employment Generation).
Manufacturing Sector - Rs.25 lakh
Business/ service sector - Rs.10 lakh
Insurance cover to khadi artisans under
Janshree Bima Yojana.
A. Death due to:
natural causes – Rs.20,000;
accident –Rs.50,000.
B. For permanent disability (loss of two eyes or two limbs) –
Rs.50,000.
Market Development Assistance to Khadi
Institutions
20 % on cost of production of Khadi and Polyester to the
extent of production target approved by Standing Finance
Committee (SFC) of KVIC for the year.

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MSME- Schemes
ARI Division
Financial assistance to coir units for export
under plan (General)
Financial assistance of up to Rs.2 lakhs is provided to eligible coir
exporters to participate in the international fairs/product promotion
programmes, etc. Assistance for publicity material up to 25% of the
production cost with over all ceiling of Rs.15,000 is also admissible.
Training to coir workers for capacity
development and quality improvement.
The trainees – Rs.750/ month
Honorarium for the trainer is limited - Rs.5,000/ month.
Training sponsoring agency- Rs.250 per head per month
R&D activities of Coir Board under the Central
Sector Plan scheme of Science &
Technology (S&T) of the Coir Board
Assistance is provided only to the two R&D institutes functioning
under the Coir Board

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MSME- Schemes
ARI Division
Development of Production Infrastructure
(DPI) scheme
25% of the cost of equipment subject to a maximum of Rs.6 lakhs
& Rs.4 lakhs for automatic spinning unit and Rs.5 lakhs for others
including coir pith. For a composite or a multiple unit the
maximum ceiling of financial assistance is Rs.9 lakhs.
Insurance cover for coir units under the plan 1. Accident death : Rs.50,000
2. Permanent Total disability : Rs.50,000
3. Permanent Partial Disability: Rs.25,000
4. Provision for finger cut: Depending upon the finger and
limited to applicable percentages of capital sum insured.
Financial assistance to Coir units under
REMOT
Bank loan/Credit role - 55%
Government Grant (Margin money – subsidy) - 40%
Beneficiaries contribution - 5%

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 This support programs aims at organizing awareness campaigns to sensitize MSMEs, students
from it is on Quality Management Standards/Quality Technology Tools and related DC-MSME
schemes
 Funding support for conducting training and awareness activities.
 Financial assistance by Govt of India (GOI) to set up Mini tool rooms through a Public Private
Partnership mode. The mini tool rooms aim to provide facilities to MSMEs for design and
manufacturing of tooling.
 GOI would provide funds to meet a part of the project cost, the extent of which would be
determined through a competitive bidding process.
 Any persons other than NGOs. SME-Development Act, 2006 and form an SPV (Mini Cluster).
DC MSME Scheme
Scheme for 'Enabling manufacturing sector to be competitive through Quality Management
Standards and Quality technology tools'- an NMCP Scheme
Scheme for 'Setting up Mini Tool Room & Training Centres under PPP Mode'- an NMCP Scheme

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 The focus of this component will be on imparting training for upgrading the skills of cluster/product
group members on modern marketing techniques .
 The training programmes will be designed and organized by the specialized institutes/industry
associations by utilizing the services of the competent faculties from expert institutions . The
programme will be designed for two days duration .
 The training of at least 20 persons in each cluster will be necessary.
 Skill Development
 The objective of the program is to promote adoption of modern packaging techniques through
implementing pilot projects in select MSMEs.
 Funding support for conducting pilot projects.
DC MSME Scheme
Funding support for conducting skill development programs on ‘Modern Marketing Techniques’.
Funding support for implementation of pilot projects related to ‘Packaging Techniques’.

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 Banks and financial institutions are provided funding assistance under this scheme so that they
can in turn lend collateral free credit to MSMEs.
 Funding support to banks and financial institutions for lending collateral-free credit to MSMEs.
 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.
 The assistance includes funding support for initiating/ contesting anti‐dumping cases by MSME
Associations.
 Finding support for undertaking legal procedures.
 Industry Associations can apply for this scheme.
DC MSME Scheme
Funding support for contesting anti-dumping cases.
Scheme for 'Credit Guarantee Fund for Micro and SmalI Enterprises‘.

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 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.
 It provides funding support for conducting assessment studies.
 The objective is to enhance the manufacturing competitiveness of MSMEs through the
application of various Lean Manufacturing (LM) techniques.
 Provides financial assistance for implementing pilot projects.
DC MSME Scheme
Scheme for 'Building Awareness on Intellectual Property Rights' (IPR) for the Micro, Small & Medium
Enterprises- an NMCP Scheme.
Scheme for 'Lean Manufacturing Competitiveness of Micro Small and Medium Enterprises (LMCS)'-
an NMCP Scheme.

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 Provide marketing platform to manufacturing MSMEs through enabling their participation in State/ District
level exhibitions being organized by State/District Authorities/Associations.
 Free registration for participating in trade fairs.
 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).
 For Women/SC/ST Entrepreneurs & Entrepreneurs from North Eastern Region Govt. of India will reimburse
80% of items listed in above. (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).
DC MSME Scheme
Scheme for 'Marketing Assistance and Technology Up-gradation of MSMEs'- an NMCP Scheme

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 The support program aims to promote studies , assessment gap analysis with reference to the
existing packaging procedures vis-à-vis the modern packaging techniques required for the export
market.
 Funding support (INR 10 Lakh) for conducting analytical studies.
 Competent agency as per the EOI guidelines.
 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
 Funding support for conducting market research and analytical studies
DC MSME Scheme
Funding for conducting assessment and gap analysis related to packaging needs

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 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.
 Funding support for conducting analytical studies.
 This support programs aims at conducting DSRs to map all business processes of the cluster
unit, 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.
 Funding support for conducting analytical studies.
DC MSME Scheme
Funding support for preparing cluster level ‘Diagnostic Study Report (DSR)’.
Funding support for preparing cluster level ‘Detailed Project Report (DPR)’.

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threatened by international competition due to issues related to marketing/branding strategies.
 Funding support for conducting market research and analytical studies.
 This support program aims at raising awareness on technology upgradation in packaging and
building capacities and related DC-MSME schemes through organizing workshops (normally 1
day duration) for MSMEs.
 Funding support for conducting awareness activities.
DC MSME Scheme
Funding support for conducting trade competition studies.
Funding support for conducting awareness workshops on ‘Packaging Techniques’.

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 Marketing hubs are being set up to provide facilities for B2B meeting among MSMEs, wholesale and
retail marketing of MSME products, exploring the export opportunities for the MSME products ,to
attract new customers and enhance the marketing reach of the MSMEs.
 Funding support of Rs.30 lakhs (GoI) for marketing hubs, plus Rs.5 lakhs (GoI) for furniture, IT, etc.,
recurring expenses of Rs.15 lakhs (80% GoI, 20% private units) for 2 years.
 The objective is to encourage MSMEs to adopt good corporate governance practices. Office of the
Development Commissioner (MSME) will identify MSME units for participating in the corporate
governance activities on the basis of request received through the MSME- DIs, Industries
Associations and NGOs.
 Financial assistance for adopting corporate governance practices.
DC MSME Scheme
Funding support for setting up of ‘Marketing Hubs’.
Funding support to MSME for adopting Corporate Governance practices.

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 The Office of the DC (MSME) will identify MSME clusters / units from NE region for participation in
selected marketing events and exhibitions for displaying their products & services.
 Reimbursement of registration fee and travel cost for participation in marketing events.
 The workshops aim to encourage MSMEs adopt latest packaging techniques and provide DC-MSME
scheme related awareness. The workshop will normally be of one-day duration.
 Skill Development.
DC MSME Scheme
Funding support to MSMEs belonging to North-East (NE) Regions for participation in marketing
events.
Participate in awareness workshops on ‘Packaging Techniques’.

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 The support program aims to promote studies , assessment gap analysis with reference to the
existing packaging procedures vis-à-vis the modern packaging techniques required for the
export market.
 Funding support (INR 10 Lakh) for conducting analytical studies.
threatened by international competition due to issues related to marketing/branding strategies
 Funding support for conducting market research and analytical studies
DC MSME Scheme
Funding for conducting assessment and gap analysis related to packaging needs.

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 This support program aims at raising awareness on technology upgradation in packaging and
building capacities and related DC-MSME schemes through organizing workshops (normally 1
day duration) for MSMEs
 Funding support for conducting awareness activities.
 Competent agency as per the EOI guideline.
 Scheme for 'Providing Financial Assistance on Bar-Code' an NMCP Scheme
 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
 Funding support for reimbursement of 75% of one time and recurring bar code registration fees
DC MSME Scheme
Reimbursement of registration fee for Bar coding

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 The objective is to provides 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
 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.
 Funding support for organizing training and awareness activities on energy efficiency.
DC MSME Scheme
Scheme for 'Support for entrepreneurial and managerial development of SMEs through incubators'-
an NMCP Scheme.
Scheme for 'Technology and Quality Upgradation (TEQUP) Support to MSMEs'- an NMCP Scheme

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 The support program aims to enable MSMEs develop new design strategies, get consultancy
support from design experts and implement ‘Design’ projects.
 Funding Support for implementing Design Projects.
 Applicants can be:
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. If you are an MSME and are in search of a design consultant, please click here to view and get in
touch with prospective partners as design consultants.
DC MSME Scheme
Scheme for 'Building Design expertise of MSMEs Manufacturing sector (Design clinic scheme)'- an
NMCP Scheme.

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 The support program aims to handhold the MSME clusters in adopting energy efficient
processes, conducting energy audits and preparing related reports (audit reports, DPRs).
 Funding support to MSMEs, industry associations and expert agencies for conducting energy audits,
preparing audit reports and DPR.
 The objective is to encourage MSMEs in adopting energy efficient technologies through
implementation of pilot projects.
 Financial support through banks (SIDBI) to MSMEs for adopting energy efficient technologies.
DC MSME Scheme
Funding support for conducting energy audits, preparation of audit reports and detailed project
reports (DPRs).
Funding support for implementing pilot projects on ‘Energy Efficient Technologies’.

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 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.
 Reimbursement of expenditure incurred on product certification.
 The support program aims to promote setting up of carbon aggregation centres in the potential
clusters having adequate number of EET/Renewable Energy (RE) based projects.
 Funding support for infrastructure development.
 MSME associations, Technical Institutions, ESCOs .
DC MSME Scheme
Funding support for setting up of ‘Carbon Credit Aggregation Centres’.
Funding support for 'Product Certifications‘.

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 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.
 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 DC-MSME schemes.
 Financial assistance for conducting training and awareness activity.
DC MSME Scheme
Scheme for 'Promotion of ICT in Indian Manufacturing Sector (ICT)'- an NMCP Scheme.
Participate in ‘Energy Efficiency’ workshop.

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 The E-clubs are intended to create a platform for entrepreneurs to come together through
workshops/seminars, discuss common issues and identify solutions in areas such as obtaining
certifications, participating in trade fairs, implementing of Quality Management Tools etc.
 Funding support is available for for formation of entrepreneurship clubs, conduct meetings and
management training activities. Free registration for club members.
 SISI, Universities, Club members/committee can apply for this scheme.
 The support programs aims to provide grant (up to 30% of the total project cost as appraised by
lending institutions) to provide adequate security demanded by banks in the form of collaterals.
 GOI Grant and the loan portion from the lending agencies to assist such women shall be routed
through eligible NGOs engaged in assisting poor women through any kind of income generating
activities in non farm sector.
 Ease in availability of credit for women-led enterprises.
DC MSME Scheme
Loan related assistance to women.
Programs in Entrepreneurs Club.

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 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.
 Funding support for soft infrastructure upgradation.
 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 ICT related hardware and software.
 Funding support to MSMEs for infrastructure upgradation.
DC MSME Scheme
Funding support for establishing National portal.
Funding support for ICT infrastructure upgradation.

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 E-readiness centre will be set up for providing local solution and training of MSME staff.
 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.)
 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 DC-MSME schemes.
DC MSME Scheme
Funding support for setting up of ‘E-readiness Centre.
Participate in ‘ICT Awareness’ workshop.

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 This support program aims to enhance and develop cluster infrastructure projects for facilities
such as power distribution, water, telecommunication etc.
 Funding support for cluster infrastructure development.
 The several soft interventions include activities such as: General awareness, counselling,
motivation and trust building, Exposure visits Market development including exports,
participation in seminars Workshops and training programmes on technology upgradation etc.
 Funding support for conducting training and awareness activities.
DC MSME Scheme
Funding support for conducting soft interventions in MSME clusters.
Scheme for 'Micro & Small Enterprises Cluster Development Programme (MSE-CDP)‘.

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 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.
 Funding support for infrastructure development.
 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.
 GoI financial assistance (upto 40% of the project cost) shall be available for infrastructure
development.
DC MSME Scheme
Funding support for setting up of common display centres for women.
Funding support for setting up of ‘Common Facility Centres’.

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 Soft interventions including general awareness, counselling, 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.
 MSMEs can get a capital subsidy (~15%) on credit availed for technology upgradation.
 Financial assistance for availing credit and loan.
 Banks and financial institutions can apply to DC-MSME for availing support.
 MSMEs need to directly contact the respective banks for getting credit and capital subsidy.
DC MSME Scheme
Scheme for 'Credit Linked Capital Subsidy for Technology Upgradation (CLCS- TU)‘.
Participate in awareness programs on ‘Cluster Development’.

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 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.
 Funding support for reimbursement of 75% of one time and recurring bar code registration
fees.
 All MSME with EM Registration can apply for this scheme.
 The scheme of Micro-Finance Programme has been tied-up with SIDBI by way of contributing
towards security deposits required from the MFIs/NGOs to get loans from SIDBI.
 Financial assistance to provide for security deposits for lending credit and loans.
 All NGOs and MFIs can contact SIDBI, all MSMEs can contact the NGOs and MFIs.
DC MSME Scheme
Scheme for 'Micro Finance Programme‘.
Reimbursement of registration fee for Bar coding.

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 The financial assistance will be provided to EDIs for improvement in areas like building, training aids/
equipment and other support services. The State Govt. will examine the expansion/ modernisation
programmes of EDIs.
 Financial assistance to existing and new EDIs for infrastructure development .
 All EDIs can apply under this scheme.
 The support program aims to support 5 universities to form and run entrepreneurship clubs (one
each from Northern, Western, Eastern, Southern and North East region) for increasing networking
and interaction among MSMEs. Each university would be required to run 240 clubs per year and
each club may have a membership of 50 entrepreneurs.
 Funding support to the selected universities for formation and operation of entrepreneurship clubs.
 5 Universities will directly be selected by MSME-DI.
DC MSME Scheme
Scheme for 'Supporting 5 selected universities / colleges to run 1200 entrepreneurship clubs per
annum‘.
Scheme 'Strengthening of Training Infrastructure of existing and new Entrepreneurship Development
Institutions (EDIs)‘.

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 Training organizations conducting training programmes for empowerment of women
beneficiaries would be provided a grant upto maximum limit of Rs. 1.00 lakh per programme
provided such institutions also bring their share to the extent of minimum 25%(10% in case of
NER) of the Government grant.
 The batch size for such a training activity will be at least 20 participants. Duration of the
training programme will be minimum one month.
 Funding support for conducting training program for women empowerment.
 Skill development training will be provided to women applicant under the scheme. Duration of
the training programme will be minimum one month. The batch size for such a training activity
will be at least 20 participants.
 Skill development., women entrepreneurs can apply for the scheme
DC MSME Scheme
Participate in training programs for women empowerment.
Scheme for 'Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme to Women‘.

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 The four kind of training programmes conducted by MSME-DIs include
 Motivation Campaigns,
 Entrepreneurship Development Programs,
 Entrepreneurship Skill Development Programme,
 Management Development Programmes
 No registration fees for participation in ESDP.
 MSMEs and large enterprises can participate in VDPs which are organized by MSME Development
Institutes to provide common platform for interaction and display of the capabilities, products, goods and
services.
 Free of cost registration in the event.
 All enterprises (Both the MSMEs and Large Enterprises) can apply for this scheme.
DC MSME Scheme
Scheme for 'Entrepreneurship Skill Development Programmes (ESDP)‘.
Scheme for 'Vendor Development Programme for Ancillarisation‘.

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SBS And Company LLP
Chartered Accountants
6-3-900/6-9, Flat No. 103 & 104, Veeru Castle
Durga Nagar Colony,
Panjagutta, Hyderabad - 500 082
Telangana, India.
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Telangana: Hyderabad (HO)
Andhra Pradesh: Nellore, Kurnool, TADA (near Sri
City), Vizag
Karnataka: Bangalore
+91-40-40183366 / +91-40-64584494 / +91-9246883366
CA Rajesh D
FCA, B.Com
PH: +91 9849304255
rajeshd@sbsandco.com
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MSME Registration and Its Benefits

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