MSME-DEVELOPMENT INSTITUTE
[formerly Small Industries Service Institute]
Ministry of Micro, Small & Medium Enterprises, Government of India

HYDERABAD, ANDHRA PRADESH
 
Websites: http://sisihyd.gov.in ; http://msmehyd.ap.nic.in
Email ID: dcdi-hyd@dcmsme.gov.in
 

 

 

CENTRAL GOVERNMENT SCHEMES FOR PROMOTION OF MSMEs

 
1. BAR CODE
  n Existing MDA Scheme has been modified to popularize Bar Coding.
  n Bar Coding is an effective Tool to improve marketability.
  n Reimbursement allowed :
    Ø One Time Registration Fee.
    Ø 75% of Annual Fee for 1st 3 years (Bar Code Certificate).
  n 1400 SMEs are expected to be Benefited during 11th FY Plan.
  n Guidelines are available on the website of office of the DC(MSME) www.dcmsme.gov.in
 
2. INCUBATORS (E & MD):
  n Object :
    Ø Assist Incubation of Innovative Ideas.
    Ø Encourage the incubated Ideas to Become SMEs.
  n Total Project cost – Rs. 79.45 Crores.
    Ø GOI Share   – Rs. 66.50 Crores.
    Ø 2008-09 Budget Estimate – Rs. 8.00 Crores.
  n Rs. 80 Cr. Project for 100 Business Incubators (BIs).
  n 100 BIs to be Located in R&D Institutes @ 25 p.a.
  n Govt. Grant (Max. 85%) = Rs.4 to 8 Lakhs per Idea.
  n Each BI to Assist 10 Ideas / Units.
  n R&D Institutions and BIs to Suggest & Nurture.
 
3. MINI TOOL ROOMS ON PPP MODE:
  n MINI Tool Rooms are essential for MSMEs for Tools & Industrial Training.
  n Tooling & Training Needs of MSMEs rising rapidly.
  n Total Project cost – Rs. 210.00 Cr.
    Ø GOI Share   – Rs. 135.00 Cr.
    Ø 2008-09 BE – Rs. 20.00 Cr.
  n MTR cost may range from Rs. 2 Cr. to Rs.25 Cr.
    Ø Government’s Funding @ 40% maximum.
  n Expected Government's Funding = Rs. 135 Cr.
    Ø Total Cost of Projects : Rs.350 Cr. in 4 years time.
  n To be Managed by Private Partners only.
  n Local Industry to gain from Services / Skills.
  n Traditional Centre-State Option  also is open.
    Ø GoI - Rs.9 Cr. and State Govt. - Rs.6 Cr.
  n Another Option:
    Ø GoI – Rs.9 Cr. and State Govt. + Pvt. (Rs.6 Cr.)
 
4. IPR CAMPAIGN:
  n IPR Tools:
    W Trade Secret.
    W Industrial Design.
    W G.I.
    W Patents.
    W Copyrights.
    W Trademark.
  n Total Project cost – Rs.55.00 Cr. (GoI = Rs. 50.00 Cr.).
    Ø 2008-09 BE – Rs. 8.00 Cr.
    1) 50 Awareness & Sensitization Programmes.
      Ø Rs.1 Lakh per Programme by Association etc. = Rs.1.5 Cr.
    2) 30 Pilot Studies with Associations / Clusters = Rs.75 Lakh.
      Ø Rs.2.5 Lakh each for Diagnosis & Actions.
    3) 50 Interactive Seminars / Workshops.
      Ø To Discuss Study Reports and Implementation.
      Ø @ Rs.2 Lakh = Rs. 1 Cr.
    4) Short / Long Term Training for IPR Cadres of MSMEs.
      Ø 50 ST (2-3 weeks) and 10 LT (6 months).
      Ø @ Rs.6 Lakh (ST) and Rs.45 Lakh (LT) = Rs.7.5 Cr.
    5) 40 IP Facilitation Centres by SPV on PPP.
      Ø For Handholding SMEs in IPR on Low Fees.
      Ø @ Rs.65 Lakh = Rs.26 Cr.
    6) Financial Assistance for Patents and GIs (Rs.10 cr.)
      Ø Patent @ Rs.25,000 for Domestic, Rs.2 Lakh for Int’l.
      Ø GI Regn. – Rs. 1 lakh per case.
    7) Activities with International Agencies (Rs.2 Cr).
      Ø Best Practices, Capacity Building, Exchanges.
      Ø 25 Nos. Domestic @ Rs.5 Lakh / 10 Int’l @ Rs.7.5 Lakh.
    8) Miscellaneous and Contingency (Rs.1.25 Cr).
 
5. QUALITY MANAGEMENT SYSTEMS / TOOLS (QMS/QTT):
  n MSME’s ISO Reimbursement Scheme Successful.
  n QMS: ISO-22000 (Food), ISO-18000 (Health) etc.
  n QTT:  Introduces proven Tools like 6-Sigma, 5-S, Kaizen, TPM, TQM etc.
  n Total Project cost – Rs.50.00 Cr. (GoI = 80%).
    Ø 2008-09 BE – Rs.7.00 Cr.
  n FIVE Activities to Further Propagate Quality Management:
    1) Compulsory Courses in ITIs / Polytechnic Colleges.
      Ø QCI/NPC to prepare Course Curricula
      Ø 1800 ITIs / Rs.4.25 Cr. p.a = Rs.17 Cr.
    2) Assist International Study Missions.
      Ø For Detailed Study of Best QM Institutions.
      Ø 2 missions / Rs.1 Cr. p.a  = Rs.4 Cr.
    3) Special Programmes for Threatened Products.
      Ø Detailed Analysis of Selected Imports.
      Ø Leading to Improved Indian Products.
      Ø 2 Sectors / Rs.0.6 Cr. p.a = Rs.4 Cr.
    4) Implement Quality Management Techniques in Clusters.
      Ø 400 Units (in Clusters) to be Studied for QM.
      Ø Relevant QMS/QTT to be Implemented.
      Ø 100 Units / Rs.2.5 Cr. p.a = Rs.10 Cr.
    5) QM Awareness Programmes among MSMEs.
     

Ø

400 Programmes in 4 years in Selected Areas
      Ø To Address Both Middle Management & Shop Floor Levels.
      Ø 100 Nos. p.a @ Rs.1.25 Lakh  x 4 years = Rs.5 Cr.
 
6. LEAN MANUFACTURING:
  n Lean Manufacturing (LM) is Better Production of Goods.
    Ø Using less of all Inputs, Cutting Waste
  n SMEs either Don't Know or Cannot afford LMP.
  n Total Project cost = Rs.32 Cr. for First 100 Mini Clusters.
    Ø GOI Share – Rs.25.6 Cr. (1st year only).
    Ø Private Share – Rs.6.4 Cr. (1st year only).
  n Rs.32 Lakh per Mini Cluster i.e. Group of 10 Units.
  n Rs.24 Lakh per Consultant for each Mini Cluster (1st year).
  n Rs.8 Lakh to IAs for Project Management Services (1st year).
  n 1st Phase to Cover 1000 units in 100 MCs in 1 to 1.5 years.
  n If Successful, to cover 7,000 to 10,000 units in 4 years.
  n 100 Consultants Required Immediately.
  n Govt : Private Funding  = 80 : 20 (1st Yr); 0 : 100 (2nd Yr).
  n Industry Associations to Execute through IAs & SPVs.
    Ø Lead / Locate / Appoint / Pay / Monitor.
 

OTHER SCHEMES

 
7. RAJIV GANDHI UDYAMI MITRA YOJANA:
  n RGUMY to Handhold New Entrepreneurs.
    Ø Support through Lead Agencies – Udyami Mitras, i.e:
      -- To Link Entrepreneurs, Projects, Banks & Admn.
  n UMs to assist Project Selection & Preparation.
    Ø Pursue with Banks and Government Agencies.
  n UMs to Receive Payment Per Case – Rs.6,000/- & above.
  n Support to 1.5 Lakh entrepreneurs.
  n Awareness & UM Identification are Essential.
 
8. CREDIT LINKED CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION:
  n

Aims at facilitating technology upgradation by providing 15% upfront capital subsidy to MSME Units, including tiny, small and village industrial 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.

  n The revised ceiling on loan amount for availing the benefit under this scheme is Rs.100 Lakhs.
 
9. CREDIT GUARANTEE FUND TRUST FOR MSEs - CGTMSE:
  n Collateral free loans upto a limit of Rs.50 Lakhs.
  n

The guarantee cover available under the scheme is to the extent of 75% of the sanctioned amount of the credit facility.

  n

The extent of guarantee cover is 80% for:

    (i)  Micro Enterprises for loans upto Rs.5 Lakhs;
    (ii)  MSEs operated and/or owned by women and
    (iii)  all loans in the North-East Region.
 

n

In case of default, Trust settles the claim upto 75% (or 80%) of the amount in default of the credit facility extended by the lending institution.
 
10. ISO-9001/ISO 14001 CERTIFICATION REIMBURSEMENT SCHEME:
  n This scheme is for individual MSMEs/Ancillary/Tiny/SSSBE Units.
  n  The scheme envisages reimbursement of charges for 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.
  n It is applicable to those MSEs who have already acquired ISO-9000/ISO14001/HACCP Certification.
  n Only one time reimbursement is allowed against a E.M. Number for acquiring ISO-9000/ISO-14001/HACCP Certification.
 
11. PARTICIPATION IN INTERNATIONAL TRADE FAIRS:
  n

The GoI will reimburse 75% of the air fare by economy class subject to upper limit of Rs.40,000/- (Rs.60,000/- for Latin American Countries) for small manufacturing enterprises and 90% (with corresponding absolute ceiling) for Micro manufacturing enterprises and 50% subsidy on space rent.

  n Women entrepreneurs are eligible for 100% reimbursement in airfares and space rent.
  n Subsidy of Rs.15,000/- per participating unit for the shipping cost of exhibits for display.
  n Any unit can avail of this facility only once a year and only one person of the participating unit would be eligible for subsidy on air fare.
 
12. MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME:
  n

This Scheme is for promoting technology upgradation in clusters for a group of MSME Units of one industry.

  n Government of India assistance shall be limited to Rs.2 Crore i.e. 40% of the project cost not exceeding Rs.5 Crore per centre.  The assistance will also be available for setting up of new Clusters/Industrial Estates.
  n Government of India assistance shall be available upto 90% of the cost (subject to ceiling of Rs.9 Crore) for clusters developed exclusively for Micro & Small Enterprises operated and/or owned by women under MSE-CDP.
 
13 SCHEME FOR CAPACITY BUILDING:
  n Scheme for capacity building, strengthening of database and advocacy by industry/enterprise associations as envisaged in the promotional package for MSEs.
  n Financial assistance for the secretarial and advisory/extension services to selected National Associations are to be provided annually upto a maximum of Rs.5 Lakhs per Association depending upon the size and reach of the Association.