Schemes for MSME

Government Schemes For MSMEs

1. Prime Minister Employment Generation Programme and Other Credit Support Schemes
1.1 Prime Minister Employment Generation Programme (PMEGP)

• The scheme aims to provide financial assistance to set up self-employment ventures and generate sustainable employment opportunities in rural as well as urban areas.
• To generate sustainable and continuous employment opportunities for rural and unemployed youth as well as prospective traditional artisans and thereby halt occupational migration.

1.2 Credit Guarantee Scheme for Micro & Small Enterprises

To encourage first generation entrepreneurs to venture into self-employment opportunities by facilitating credit guarantee support for collateral free / third-party guarantee-free loans to the Micro and Small Enterprises (MSEs).

1.3 Interest Subsidy Eligibility Certificate (ISEC)

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding khadi programme undertaken by khadi institutions. It was introduced to mobilise funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from budgetary sources.

2.1 Khadi Gramodyog Vikas Yojana (KGVY)

• To increase productivity and wages of Khadi Artisans and secure livelihood.
• To improve Infrastructure for Khadi Production.
• Increased Khadi Production, Sales and Employment.
• Development of Village Industries and increase number of rural artisans.
• To revive the traditional and inherent skills of rural artisans.
• To renovate and Modernize Sales Outlets.
• To promote Marketing and Exports.

 

2.2 Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

• To organize traditional industries and artisans into collectives by increasing production and value addition to make products competitive.
• To promote traditional sectors and increase income of artisans providing sustainable employment.

 

2.3 Coir Vikas Yojana (CVY)

• To enhance utilization of the raw material abundantly available in the country at economic levels of production.
• To increase income/returns to workers, entrepreneurs, exporters and other stakeholders of the industry.
• Full utilization of the market potential of the products within the country and abroad and Industry related functional support services.
• Development of improved equipment, machinery, processes and new products.
• Promoting large scale investment in Coir Industry.
• Development of skilled manpower for Coir industry, empowerment of rural women and Employment Generation.
• Welfare measures for coir workers.
• To upgrade the coir industry through technological interventions and integration of various Digital Platforms.

 

2.4 A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

To set up a network of Livelihood Business Incubators (LBIs), predominantly in the rural and underserved areas, to promote innovation and accelerate entrepreneurship for the following:
• Generate employment opportunities by facilitating formal, scalable micro-enterprise creation in the agro-rural sector.
• Skill, up-skill, re-skill unemployed, self-employed/ wage earners in new technologies in the agro-rural sector.
• Provide skilled human capital to nearby industrial clusters and promote innovations for strengthening the competitiveness in the MSME sector.

3.1 Procurement & Marketing Support Scheme (PMS)

The scheme aims to promote new market access initiatives like organizing/participation in National/International Trade Fairs/Exhibitions/MSME Expo, etc. held across the country and to create awareness and educate the MSMEs about the importance/methods/process of packaging in marketing, latest packaging technology, import-export policy and procedure, GeM portal, MSME Conclave, latest developments in international/national trade and other subjects relevant for market access developments.

 

 

3.2 International Cooperation Scheme

The scheme aims to build capacity of MSMEs for entering export market by facilitating their participation in international exhibitions/fairs/conferences/seminar/buyer-seller meets abroad as well as providing them with actionable market intelligence and reimbursement of various costs involved in export of goods and services. The Scheme provides opportunities to MSMEs to continuously update themselves to meet the challenges emerging out of changes in technology, demand, and markets.

MSME Champions Scheme (Erstwhile CLCS-TUS)

4.1 MSME Sustainable (ZED) Certifications

The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED) practices amongst MSMEs so as to:
• Encourage and enable MSMEs for manufacturing of quality products using latest technology, tools & to constantly upgrade their processes for achievement of high quality and high productivity with the least effect on the environment.
• Develop an Ecosystem for ZED Manufacturing in MSMEs, for enhancing competitiveness and enabling exports.
• Promote adoption of ZED practices and recognizing the efforts of successful MSMEs.
• Encourage MSMEs to achieve higher ZED Certification levels through graded incentives.
• Increase public awareness on demanding Zero Defect and Zero Effect products through the MSME Sustainable (ZED) Certification.
• Identify areas to improve upon, thereby assisting the Government in policy decisions and investment prioritization.

 

4.2 Lean Manufacturing Competitiveness for MSMEs (LEAN)

The objective of the scheme is to enhance the Domestic and Global Competitiveness of MSMEs through the application of various Lean Techniques that inter-alia includes:

  1. Reduction in:
    • Rejection Rates
    • Product and Raw Material Movements
    • Product Cost

  2. Optimization of:
    • Space Utilization
    • Resources like Water, Energy, Natural Resources etc.

  3. Enhancement of:
    • Quality of Products and Process
    • Production & Export Capabilities
    • Workplace Safety
    • Knowledge & Skill Set
    • Innovative Work Culture
    • Social & Environmental Accountability
    • Introduction & Awareness to Industry 4.0
    • Digital Empowerment
    • Profitability

 

4.3 MSME – Innovative (Incubation, IPR, Design and Digital MSME)

• To promote all forms of innovations in the complete value chain from developing ideas into innovative applications through incubation and design interventions.
• To provide appropriate facilities and support for development of concept to market, design competitiveness and protection & commercialization of Intellectual creations of MSME sector.
• To promote a culture of innovation and creative problem solving through knowledge sharing and collaboration amongst industry, academia, government institutions, research laboratories etc.
• To serve as a connecting link between industrial/academia leaders and innovators, in order to encourage new product development and hand-holding.
• To focus on developing affordable innovations that can benefit a large number of people and at the same time being commercially viable and sustainable.

5.1 Entrepreneurship Skill Development Programme (ESDP)

To promote new enterprises, capacity building of existing MSMEs and inculcating entrepreneurial culture in the country.

 

5.2 Assistance to Training Institutions (ATI)

The assistance is provided to National level training institutions operating under the Ministry of MSME, namely, NI-MSME, KVIC, Coir Board, Tool Rooms, NSIC & MGIRI in the form of capital grant for the purpose of creation and strengthening of infrastructure and support for entrepreneurship development and skill development training programmes.
Assistance is also provided to existing State level EDIs owned and controlled by a State Government/UT for creation or strengthening/expansion of their training infrastructure.

• To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills & quality, market access, etc.
• To create/upgrade infrastructural facilities in the new/existing Industrial Areas/Clusters of MSEs.
• To set up Common Facility Centres (for testing, training, raw material depot, effluent treatment, complementing production processes, etc).
• Promotion of green & sustainable manufacturing technology for the clusters.

NSIC has been established to carry out the objectives specified in the Memorandum and Article of Association.
The main activities of NSIC are to promote and support Micro, Small & Medium Enterprises (MSMEs) sector by providing integrated support services encompassing Marketing, Technology, Finance and other services.

7.1 Single Point Registration Scheme (SPRS)

The Single Point Registration Scheme was introduced in 1976 with the objective to avoid the multiple registration.

7.2 Credit Support

To meet the credit requirements of MSME units, NSIC has entered into a Memorandum of Understanding with various Nationalized and Private Sector Banks.
Through syndication with banks, NSIC facilitates credit support to MSMEs (fund based or non-fund based limits) from these banks.
Any MSME Unit can approach directly to any of our nearest branch office and submit their request application for loan requirement under our tie-up agreement.

7.3 Raw Material Distribution

Raw Material Assistance Scheme aims at helping MSMEs by way of financing the purchase of Raw Material (Both indigenous & imported). This gives an opportunity to MSMEs to focus better on manufacturing quality products.

7.4 Consortia & Tender Marketing Scheme

Promotion of the product of Micro and Small Entrepreneurs is one of the major objectives of the Corporation.
In the present competitive scenario a need has been felt to facilitate Micro and Small Enterprises to market their goods/services individually or collectively through ‘Consortium’.

7.5 NSIC Technical Services Centers

NSIC provides technical support to MSMEs through ‘NSIC Technical Services Centres’ (NTSCs) and a number of TICs & LBIs spread across the country.
The range of technical services provided include skill development, material and product testing, common facilities, energy audit, and environment management.

7.6 E-Marketing / Digital Services Facilitation for MSMEs

Facilitate MSMEs in terms of ICT adoption by way of providing digital services from leading service providers.
To make MSMEs digitally empowered with a view to improve their competitiveness in national and international markets by increasing their efficiencies through automation, cost reduction, and capacity enhancement.

To provide professional support to Scheduled Caste and Scheduled Tribe Entrepreneurs to fulfill the obligations under the Central Government Public Procurement Policy for Micro and Small Enterprises Order 2012, adopt applicable business practices and leverage the Stand-Up India initiatives.

The Indian entrepreneurs are very creative to innovate new products and processes as well as provide innovative services to remain competitive in domestic and global markets.
To encourage such innovative efforts and promote their spirit in larger interest of qualitative development of MSME, the Ministry of MSME recognizes the contributions of these entrepreneurs for their outstanding performance and motivate and encourage them by conferring awards at the National Level.

Establishment of New Technology Centres / Extension Centres (TCEC)

• The scheme envisages establishment of 20 new Technology Centres (TCs) and 100 Extension Centres (ECs) at an estimated total outlay of the scheme, Rs. 3500 Crores.
• The primary objective of the scheme is to increase the geographic reach of TCs network to provide solution as per local needs of MSMEs for technology, skilled human resources, and advisory services.
• This will increase competitiveness and profitability of MSMEs at the grass root level.

Survey Studies and Policy Research Scheme

• Conduct the study/survey to analyze the constraints and challenges faced by the MSME as well as the opportunities available to them.
• Conduct the study/survey and analyze on the basis of empirical data and use the results of surveys, evaluation studies of scheme for this Ministry and analytical studies for policy research, designing appropriate strategies and measures of intervention by the Government.

  • The scheme envisaged for providing financial support mainly for augmenting Infrastructure development for enhancing the productivity, sustainability, competitiveness and growth by addressing common issues such as improvement of technology, skills & quality, market access etc. of Micro, Small and Medium Enterprises (MSMEs)
  • Creation of common facilities to supplement manufacturing, testing, packaging, R&D, product and process innovations and training for natural resources such as fruits, spices, agri, forestry, sericulture and bamboo etc. available in NER and Sikkim.
  • Development of tourism sector in NER and Sikkim by creation of common services such as kitchen, bakery, laundry & dry cleaning, refrigeration and cold storage, IT infra, potable water, display center for local products, center for cultural activities etc. in a cluster of home stays.
  • To create/upgrade infrastructural facilities in the new/existing Industrial Areas for MSMEs.

RAMP is a World Bank supported Central Sector Scheme aimed at improving access of MSMEs to market, finance and technology upgradation by enhancing the outreach of existing MoMSME schemes.
The programme also aims at strengthening institutions at the Central and State level, and enhancing Centre-State collaboration.

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