MSME Polices Scheme India

1. Harnessing MSMEs for
Development
Annexure II

2. MSME POLICIES & SCHEMES
BY
M. SREENIVASULU
DIRECTOR
MSME-DI, GUWAHATI

3. Ministry of MSME (NER)
DCMSME
NSIC Office
MSME-DO
(NER)
Coir Board SRO
MSME-DI,
GHY
MSME-DI
IMPHAL
MSME-DI
AGARTALA
MSME-DI
GANGTOK
DIMAPUR
(NAGALAND)
AIZWAL
(MIZORAM)
Jorhat Ext.
SILCHAR
DIPHU
TEZPUR
ASSAM
MEGHALAYA
ARUNACHAL
PRADESH
SHILLONG
TURA
ITANAGAR
KVIC ZONAL O/C
(GHY)/SILCHAR Dvn O/C
(State Office in every State)
Manipur
Tripura
Meghalaya
Mizoram
Tinsukia
Naharlagun
Siliguri
Sikkim
Agartala
Imphal
Shillong
Aizawal
MSME-TR

4. MSME- DEVELOPMEMSMNT INSTITUTE, Guwahati,
Activities in brief:
 Technical Consultancy
 Potentiality Survey (State & Districts)
 Modernization and Technology Upgradation
 Ancillary Development
 Training programmes
 Export Promotion
 Awareness programmes
 Directory of specific industries
 Coordination with DI & CC, State Govt. Agencies/ Banks
 Cluster Development.
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5. 4
Manufacturing Enterprises
Investment limit in Plant &
Machinery
Annual Turnover
Existing Proposed
Micro Enterprises Up to Rs. 25 lakh Up to Rs 5 Cr
Small Enterprises Above Rs. 25 lakh & up to Rs. 5
Crore
More than Rs 5 cr but does
not exceed Rs 75 cr
Medium Enterprises
Above Rs. 5 Crore & up to Rs.
10 Crore
More than Rs 75 cr but does
not exceed Rs 250 cr
Service Enterprises
Investment limit in Equipment Annual Turnover
Existing Proposed
Micro Enterprises Up to Rs. 10 lakh Up to Rs 5 Cr
Small Enterprises Above Rs. 10 lakh & up to Rs. 2
Crore
More than Rs 5 cr but does not
exceed Rs 75 cr
Medium Enterprises Above Rs. 2 Crore & up to Rs.
5 Crore
More than Rs 75 cr but does
not exceed Rs 250 cr
Definition of MSMEs
Cabinet has approved the changes on 7th Feb2018

6. Schemes Promotion of MSMEs

7. MSE-CDP: WHAT IS A CLUSTER
Cluster is a group of enterprises producing same or similar
products/services which can be linked together by common
physical infrastructure facilities to help them to address their
common challenges.
COMBINATION OF VILLAGE/BLOCKS AND EVEN SMALLER DISTRICTS
MAY ALSO FALL UNDER THE GEOGRAPHICAL EXTENT OF CLUSTER
PRINCIPAL CHARACTERISTICS: COMMONALITY OF PRODUCTION
PROCESS, QUALITY CONTROL & TESTING, ENERGY CONSERVATION,
APPLICATION OF TECHNOLOGY

8. FIRM FIRM
FIRM
FIRM FIRM
Backward
linkages
Machinery
supplier
Raw
Material
Supplier
Forward
Linkages
Selling
Agents
Direct
Custom
SUPPORT INSTITUTIONS
BDS PROVIDERS
ENVIRONMENT
RAW Material
Supplier

9. ADVANTAGE THE CLUSTER APPROACH
• SUBSTANTIAL ECONOMIES OF SCALE
IN TERMS OF DEPLOYMENT OF AVAILABLE RESOURCES
• EFFECTIVE IMPLEMENTATION
• MORE SUSTAINABLE RESULTS
IN THE MEDIUM TO LONG TERM.

10. OBJECTIVES
1. To support the sustainability and growth of MSEs
- Improvement of Technology, Skills and Quality,
Market access and Access to Capital
2. To build capacity of MSEs
- Formation of SHG, Consortia, up-gradation of
Associations
3. To create/up-grade infrastructure facilities
- In New/Existing Industrial Areas/Clusters of MSEs
4. To set up CFCs
- For Testing, Training Centre, RM Depot, Effluent
Treatment and Complementing Production Processes.

11. • Full time CDE
• Intermediary led
• Role of BDS
• 18 Months time
• Pressure point as
entry
• Holistic thereafter
CLUSTER DEVELOPMENT METHODOLOGY
Diagnostic Study
Trust Building
Action Plan
Implementation
Monitoring and Evaluation
Exit
Selection

12. SELLCTION OF CLUSTER(S)
• IMPORTANCE OF THE CLUSTER(S) IN TERMS OF NUMBER
OF UNITS, EMPLOYMENT, PRODUCTION, EXPORTS ETC
• EXISTENCE OF CRITICAL GAPS
• VIABILITY OF THE CLUSTER
• VIBRANCY OF LOCAL INDUSTRY ASSOCIATION/S
• SOCIAL AND ENVIRONMENTAL CONSIDERATIONS
• PREFERENCE FOR CLUSTERS HAVING :
SIZEABLE PRESENCE OF MICRO ENTERPRISES,
RURAL ARTISANS AND
WOMEN ENTREPRENEURS

13. 1. SCOPE OF MSE-CDP- Common Facility Centre:
1. To create tangible assets like- common production. Design centre,
Testing Centre, Training Centre, Effluent Treatment Plant, Marketing
Display, Selling Centre, Common Logistic Centre, Raw material Bank,
etc.
2. GOI Assistance: 90%of the project cost of maximum of Rs. 20.00 crs
Cost of land & Building to be met by SPV/state govt.
3. SPV- Minimum 20 cluster units to be members of SPV & registered as
section 8 company.
4. Project to be completed & operational within two years. Contribution
of cluster beneficiaries should not be less than 10% of the cost of
CFC. Contribution of state govt would be considered as gap funding.

14. 2. SCOPE OF MSE-CDP- Infrastructure Development
1 .Consists of projects for infrastructural facilities like power
distribution network, water, telecommunication, drainage,
pollution control facilities, roads, banks. Raw material storage,
marketing outlets.
2. GOI Assistance restricted to 80% of the project cost of maximum
Rs. 10.00 Crs for Industrial estates & Rs. 15.00 Crs for Flatted
Factory Complex.

15. 3. SCOPE OF MSE-CDP- Marketing Hub/Exhibition Centres
 GOI Assistance to associations for establishing Marketing Hubs/Exhibition
Centres at centarl places.
 GOI grant is 60% of the project cost of maximum Rs. 10.00 crs for product
specific assiciations with BMO rating of Gold & above by NABET (QCI)
 GOI grant is 80% of the project cost of maximum Rs. 10.00 crs for Association
of women entrepreneurs
 Remaining cost to be met by SPV/State Govt. SPV contribution not less than
10%.
 GOI Assistance will be towards construction of building, furnishing, furniture,
items of permanent display, misc assets like generator etc.
 Cost of construction of marketing Hub not exceeding Rs. 4.00 Crs with
builtup area of 2000 sq mt will also be eligible

16. Objective:
• Funding to traditional industries & artisan clusters
• Improvement in competitiveness of clusters.
• Sustained employability for traditional Industry artisans and rural
entrepreneurs.
Who can apply:
•NGOs, Institutions of the Central and State Governments and Semi-
Government institutions, field functionaries of State and Central Govt.,
Panchayati Raj institutions (PRIs), and similar agencies, with suitable expertise
to undertake cluster development.
16
Scheme of fund for Regeneration of Traditional Industries (SFURTI)

17.  Benefits –
•Maximum of Rs 8 cr. to support Soft, Hard and Thematic interventions.
•Type of clusters:
Heritage Clusters (1000-2500 artisans)Rs 8 crore
Major Clusters (500-1000 artisans)Rs 3 crore
Mini-Clusters (Upton 500 artisans)Rs 1.5 crore
Implementation: The KVIC, Coir Board, NiMSME (Hyderabad), IED
(Odisha), IIE (Guwahati), IMED, J&K KVIB are the Nodal Agencies for
scheme implementation in their respective areas
http://sfurti.msme.gov.in/
Scheme of fund for Regeneration of Traditional
Industries (SFURTI) Contd..

18. Procurement & Marketing Support
1. Participation of Individual MSEs in Domestic Trade Fairs/Exhibitions
Eligible Items Scale of Assistance
Space Rent Charges 100% limited to Rs. 30,000/- or actual or whichever is less
Contingency
Expenditure
(includes travel,
publicity & freight)
100% limited to Rs. 15,000/- or actual or whichever is less
One representative from each participating unit can travel by
AC-II Tier (train) or Economy Class (air). Local participants to be
paid @ Rs. 12/- per km as freight charge upto 50 km
One MSE would be allowed reimbursement for maximum 2 events in a year.

19. OrganisingTrade Fairs/Exhibitions by Ministry/O/O DC(MSME)/Govt Organisations
Eligible Items Scale of Assistance
Space Rent Charges •Implementing agency to hire bare space /stalls from event
organisers & mobilise participating units
•Upper limit of hiring build up space is Rs. 15.00 lakh/Rs. 25.00
lakh & Rs. 40.00 lakh respectively for
regional/national/international events
•Participating units to be provided stalls free of cost, subject to
one stall per unit
•Trade fair for SHGs/ Artisans/MSEs of NER to be held with
100% space rent subsidy
Advertising & Publicity &
Organising cultural
programmes through event
organiser or any approved
agency
Rs. 15.00 lakh max or actual whichever is less.

20. Capacity Building of MSMEs in Modern Packaging Techniques
Eligible Items Scale of Assistance
Unit based interventions for specific
packaging requirements
100% of total cost paid to empanneled
agency/consultancy organisation limited to Rs.
50,000/- or actual whichever is less. Agencies to be
empanelled by Indian Institute of Packaging

21. Development of Marketing Haats
Eligible Items Scale of Assistance
Upgradation / Renovation /
Modification of existing facilities
in marketing haats
Rs. 10.00 lakh per haat/city or actual,
whichever is less based on estimates
prepared by govt approved valuers/PWD
Selection of Haat to be done by implementing agency and will be need based,
through a committee comprising of Director MSME-DI as Chairman & members
from state Directorate of Industries, representatives of local bodies etc. Final
approval of DC (MSME) is required

22. Vendor Development Programme (VDP
Types of VDPs Programme Duration Scale of Assistance
State Level
Vendor
Development
programme
One Day Rs. 30,000/- per programme
National Level
Vendor
Development
programme
2-3 days Rs. 5.00 lakh subject to recovery of
10%
MSME-DI to ensure participation of all stakeholders like PSUs, State PSEs, State govt
representatives etc and also MSME Entrepreneurs

23. International/National Workshops/Seminars
Items Scale of Assistance
Internationnal/National
Seminars/Workshops to educate
MSMEs on various facets of business
development like product/process
development; innovations;
technological development, IPR
issues; EXIM policy, Public
Procurement Policy, Packaging,
Market Research & access etc
Rs. 2.00 lakh per event or actual whichever is
lower. In addition, Rs. 1.5 lakh towards for air
travel, boarding & lodging of international experts
for international event. Govt organisations or
Non-Govt organisations having atleast 5 yrs
experience in organising such events are eligible
to apply
Limit may be enhanced with approval of empowered committee subject to limit of 10-15%

24. Awareness Programme
Objective Intake Capacity &
Duration
Scale of Assistance
To create awareness on
trade fairs, digital
advertising, e-marketing
platforms, GST, GeM etc
Atleast 30 MSME
Participants
One Day
Rs. 70,000/- per
programme
Limit may be enhanced with approval of empowered committee subject to limit
of 10-15%

25. OTHER SCHEMES OF DC(MSME)
Entrepreneurship & Skill Development
Industrial Motivation Campaign (IMC) – One day awareness and Motivation
programme for self employment.
Entrepreneurship Development Programme (EDP) – Two weeks programme
on Entrepreneurship Development Programme
Management Development Programme (MDP) – Two weeks programme for
Development of Management Skills
Entrepreneurship and Skill Development Programme (ESDP) – Six weeks
Product oriented ESDPs with theoretical and practical sessions for Skill
Development
Skill Development Programme (SDP) – Six months workshop based Skill
Development Programme at the Institute premises

26. Credit Linked Capital Subsidy Scheme for Technology Up-
gradation (CLCSS)
Credit Guarantee Fund Scheme for Micro and Small
Enterprises(CGTMSE)
OTHER SCHEMES CONTD..

27. National Manufacturing Competitiveness Programme (NMCP)
Lean Manufacturing Competitiveness Scheme for MSMEs (LMCS)
Design Clinic Scheme for design expertise to MSMEs
Manufacturing sector (DESIGN)
Support for Entrepreneurial and Managerial Development of
SMEs through Incubators.
Building Awareness on Intellectual Property Rights(IPR) for
MSME.
Promotion of Information and Communication Technology ( ICT)
in Indian Manufacturing Sector
Digital MSME
OTHER SCHEMES CONTD..

28. VARIOUS SCHEMES (Cont..)
Special Scheme
National Award Scheme
Others:
UdyogAadhaar Memorandum (UAM)
MSME Data Bank -
Financial Support to MSMEs in ZED Certification Scheme
Technology Centre Systems Programme (TCSP)

29. 1. Public Procurement Policy for MSEs order, 2012 notified under section
11 of MSMED Act 2006.
2. Effective from 1st April, 2012 (Gazette notification on 26th March’ 2012.)
3. Every Central Ministry /Dept./Central PSUs shall set an annual target for 20%
procurement from MSE Sector.
4. Overall procurement goal of minimum 25% shall be mandatory after three
years i.e. from 1st April 2015.
5. A sub-target of 4% out of 25% target of annual procurement earmarked for
procurement from MSEs owned by SC/STs. 3% reserved for Women
Public Procurement Policy for MSEs

30. C
Contact Us
MSME – Development Institute
Ministry of MSME, Govt. of India
Bamunimaidam, Guwahati
Pin: 781021
E-mail id: dcdi-guwahati@dcmsme.gov.in
Website: dcmsme.gov.in

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